Question: What is the advantage of a prepayment penalty mortgage from
What is the advantage of a prepayment penalty mortgage from the perspective of the lender?
Relevant QuestionsExplain whether you agree or disagree with the following statements: a. “Freddie Mac and Fannie Mae are only allowed to purchase conforming conventional loans.” b. “In packaging loans to create a mortgage-backed ...Explain why the higher the loan-to-value ratio is, the greater the credit risk is to which the lender is exposed. Answer the below questions. a. Explain what is meant by a residential mortgage-backed security. b. Describe the sectors of the residential mortgage-backed securities market. Answer the below questions. (a) What is meant by prepayments due to housing turnover? (b) What is meant by prepayments due to cash-out refinancing? (c)What is meant by prepayments due to rate/term refinancing? What are the two types of private–label MBS?
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