23. Funds From Operations (FFO) for REITs are usually lower in dollar terms than taxable income because FFO reflect taxable income less investments made in additional properties for the given time period. a. True b. False 24. Overcollateralization refers to practice with mortgage backed security pools whereby additional mortgages are pledged to the pool, above and beyond the stated principal amount of the pool, in order to protect against defaults and early pre-payments of principal on existing loans in the pool. a. True b. False 25. If your property generates an annual NOI of $200,000 and your bank requires a DCR of 1.3, what is the maximum amount you could borrow for a fully amortizing loan with a rate of 4% and a term of 30 years? HINT: first convert your annual debt service amount into a monthly equivalent (divide by 12). a. $3.846 million b. $2.685 million c. $2.155 million d. $4.135 million 26. $500,000 of a mortgage pool had a coupon of 5%, $250,000 of the mortgage pool had a coupon of 4.5% and the last $250,000 of the pool had a coupon of 4.25%. What is the conventional quoted coupon of the pool if the servicing fee is 0.50% (50 basis points)? a. 3.75% b. 4.0% C. 4.25% d. 5.0%