What is prepayment risk
Question 1: What is prepayment risk and how does it apply to collateralized mortgage obligations and other forms of securitized mortgages?Question 2: What innovations has the mortgage lending industry developed to deal with prepayment risk?
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What is prepayment risk and how does it apply to collateralized mortgage obligations and other forms of securitized mortgages?
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Collateral can be anything of value acceptable to the bank but it typically some type of security. Dan found that customers turn over any collateral.
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