Why is a shifting interest mechanism included in a securitization where the collateral is residential mortgage loans?
Answer to relevant QuestionsSuppose that for a securitization with a shifting interest mechanism you are given the following information for some month: subordinate interest = 25% shifting interest percentage = 85% regularly scheduled principal payment ...Why does the treatment of modified loans in a nonagency RMBS deal impact the bond classes? Answer the below questions. a. At one time, prime and subprime RMBS were traded in separate markets. Why? b. Why after 2007 are prime and subprime RMBS treated as one asset type? The following appears on the web site of Chatham Financial, an advisory service: “Kennett Square, Pa., June 21, 2010 — Chatham Financial announced today that it advised Primus Capital in the defeasance of $76.9 million ...Why might an investor be skeptical about the loan-to-value ratio for a commercial mortgage loan?
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