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unlike the mortgage pass-through securities the mortgage-backed bonds are debt obligations of the mortgage originator every issue of such
the cash flows from a portfolio of us standard mortgages have the characteristic of being uncertain the cash flows from the mortgage
a mortgage is sold to the spv at the discretion of the bank to securitize it into a mortgage backed security that is the
the main aim of securitization that was initiated in the late sixties was to resolve problems of mismatch and protect the us mortgage
the basic form of a mortgage backed security is that of a mortgage pass-through security among the mortgage-related securities the
a mortgage-backed security is a debt and a kind of security that is backed by a pool of mortgages or a credit support from another
there are some misconceptions about securitizationpoor quality originators end up in securitizing their assetsa banks best
securitization has attracted a widespread application of the technique to residential mortgage loan the easiest class of a financial
to obtain an investment credit rating and make the transaction attractive to the investors some type of credit enhancement procedure is
the process of securitization can best be understood by taking the following example assume that there exists an nbfc which has hire
securitization is a financial innovation born out of the necessity the savings and loan associations of the united states of america
the following are considered the major stumbling blocksthe process becomes expensive because of the stamp duty payable it
steps involved in the process of securitizationthe following are the major steps involvedthe lender also called the
securitization refers to conversion of illiquid assets to liquid assets by converting longer duration cash flows into shorter duration
high interest rates in the early 1980s brought about this innovative mortgage arrangement sams use inflation as a way of paying for the
a swiss variable rate mortgage svrm is a version of arm which carries a coupon rate that a bank can change any time giving a
the buy down loan is similar to the pam however it is the seller of the property and not the buyerborrower who places cash in a
pams are so structured that the repayments resemble traditional mortgages from the lenders point of view and resemble gpms from the
non-traditional mortgages also referred to as alternative mortgage instruments amis do not have level monthly payments but employ some
types of mortgages1 traditional mortgages2 non - traditional mortgages3 graduated-payment mortgages gpms4 pledged-account
lenders in the us insist upon some kind of mortgage insurance there are broadly two types of mortgage
a mortgage may be defined as a pledge of property to secure a debt payment in this context we will use the term property
treasuries are the securities that theus government issues for the completion of government projects they are of different types like
emerging market bonds are the bonds offered by less developed countries the government normally issues them these exclude