Week N Mortgage Backed Securities

Frage	Antworten
What is a Mortgage Backed Security (MBS)	An asset/security backed by mortgages sold to investors
Who is involved in a National Housing Association (NHA) MBS?	CMHC/Administrator Issuers/Banks/Loans Companies etc Investors: Individuals/institutions
Difference between prepayable and non-prepayable?	Prepayable: Prepayment passed onto investor Non-prepayable: Yields lower than prepayable, because bank holds prepayment.
Calculating sale proceeds of MBS	Face Value * RPB Factor * Market Price + Accrued interest
Canadian Mortgage Bonds (CMB) are very different than MBS', with prepayment T/F	False Very similar, no prepayment
Why is prepayment bad?	Investors put their money away to be invested, not paid back right away (aka. not earning)

Zusammenfassung der Ressource

	Erstellt von dylan_earl vor mehr als 9 Jahre