Questions from Financial Markets

Q: What is an option ARM? What are the different options available

What is an option ARM? What are the different options available with this type of mortgage?

Q: How did the U.S. secondary mortgage markets evolve?

How did the U.S. secondary mortgage markets evolve?

Q: What is a mortgage sale? How does a mortgage sale differ

What is a mortgage sale? How does a mortgage sale differ from the securitization of a mortgage?

Q: How did mortgage-backed securities contribute to the recent financial crisis

How did mortgage-backed securities contribute to the recent financial crisis?

Q: What is a pass-through security?

What is a pass-through security?

Q: What is the Government National Mortgage Association? How does this organization

What is the Government National Mortgage Association? How does this organization play a role in secondary mortgage markets?

Q: What is the Federal National Mortgage Association? How does this organization

What is the Federal National Mortgage Association? How does this organization play a role in secondary mortgage markets?

Q: How has the U.S. government’s sponsorship of FNMA and

How has the U.S. government’s sponsorship of FNMA and FHLMC affected their operations? Describe the problems these two GSEs have experienced over the last 15 years.

Q: Compute the future values of the following first assuming that payments are

Compute the future values of the following first assuming that payments are made on the last day of the period and then assuming payments are made on the first day of the period:

Q: Describe a collateralized mortgage obligation. How is a CMO created?

Describe a collateralized mortgage obligation. How is a CMO created?