Question 4 5 pts Which of the following statements is FALSE regarding MPTS? The gross profit to the loan originator who forms and sells a mortgage pool as an MPTS is a function of the interest rates on the loans, any origination fees charged to the borrowers, and the MPTS investor's required rate of return none of the answer choices is FALSE O All investors share equally in the prepayment risk. When borrowers prepay due to interest rate drops, MPTS investors get their money back faster than they want it and they will receive lower yields if they want to keep their money invested in the secondary mortgage market (MPTS). D Question 5 5 pts A borrower finds that the incremental cost of borrowing an extra $90,000 to finance the purchase of an investment property is 15%. The borrower can earn 13% on alternative investments of comparable risk so he would be better off by not borrowing the extra money (ignoring tax issues). True O False Question 4 5 pts Which of the following statements is FALSE regarding MPTS? The gross profit to the loan originator who forms and sells a mortgage pool as an MPTS is a function of the interest rates on the loans, any origination fees charged to the borrowers, and the MPTS investor's required rate of return none of the answer choices is FALSE O All investors share equally in the prepayment risk. When borrowers prepay due to interest rate drops, MPTS investors get their money back faster than they want it and they will receive lower yields if they want to keep their money invested in the secondary mortgage market (MPTS). D Question 5 5 pts A borrower finds that the incremental cost of borrowing an extra $90,000 to finance the purchase of an investment property is 15%. The borrower can earn 13% on alternative investments of comparable risk so he would be better off by not borrowing the extra money (ignoring tax issues). True O False