A non-conforming mortgage: A. Cannot be used as collateral in a mortgage-backed security. B. Does not satisfy

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A non-conforming mortgage:

A. Cannot be used as collateral in a mortgage-backed security.

B. Does not satisfy the underwriting standards for inclusion as collateral for an agency residential mortgage-backed security.

C. Does not give the lender a claim against the borrower for the shortfall between the amount of the outstanding mortgage balance and the proceeds from the sale of the property if the borrower defaults on the mortgage.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 04, 2023 11:10 PM

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A non-conforming mortgage: A. Cannot be used as collateral in a mortgage-backed security. B. Does not satisfy

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B is correct A nonconforming mortgage is one that does not satis...View the full answer

Fixed Income Analysis

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