What are the two primary factors in determining whether or not funds will be lent to an applicant for a residential mortgage loan?
Answer to relevant QuestionsAnswer the below questions. (a)What features of an adjustable-rate mortgage will affect its cash flow? (b)What are the two categories of benchmark indexes used in adjustable-rate mortgages? What are the front ratio and back ratio, and how do they differ? On October 1, 2005, Fannie Mae issued a mortgage pass-through security and the prospectus supplement stated the following: FANNIE MAE MORTGAGE-BACKED SECURITIES PROGRAM SUPPLEMENT TO PROSPECTUS DATED JULY 01, ...What is the S-curve for prepayments? Explain the reason for the shape. What is meant by a derivative mortgage-backed security?
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