Finance
Mortgage-backed securities (MBS) are:
AGovernment bonds backed by the full faith and credit of the U.S.
BFinancial instruments representing an ownership interest in a pool of mortgage loans✓ Correct
CIndividual mortgage notes sold to investors
DFDIC-insured savings accounts
Explanation
MBS are financial instruments where pools of mortgage loans are packaged and sold to investors. Investors receive payments from the underlying mortgage pool. MBS enabled the growth of the secondary mortgage market.
Related Georgia Finance Questions
- Which of the following federal laws requires the lender to provide a Closing Disclosure at least three business days before closing?
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- What is the purpose of a 'Cancellation of Security Deed' in Georgia?
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- A 'certificate of eligibility' (COE) is required for which type of loan?
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- A borrower in Georgia defaults on a Security Deed. The lender sells the property at foreclosure for less than the outstanding debt. Can the lender pursue the borrower for the deficiency?
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