7. Which of the following describes a typical feature of a non-agency residential mortgage-backed security (RMBS)?

A. Senior/ subordinated structure

B. A pool of conforming mortgages as collateral

C. A guarantee by a government- sponsored enteral

19. 10 points) Imagine you have a pool of 30 year residential mortgages (FRMs, fully amortizing), WAC-5%, monthly payments. The pool balance at the beginnin 50,333,954. The mortgages, on average, have already made two years of payments are about to make their 25th payment) g of the month is (i.e.they If this month (t-25), the following mortgage enters into default, what is the realized CDR for this pool? Interpret the meaning of this number. Mortgage 1: Beginning of the month balance 400,000