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An FI funds a $5 million residential mortgage in 2022 by allocating capital and by issuing demand deposits. The mortgage represents a loan-to-value of 70
An FI funds a $5 million residential mortgage in 2022 by allocating capital and by issuing demand deposits. The mortgage represents a loan-to-value of 70 percent. The demand deposits have a reserve requirement of 10 percent and a deposit insurance premium of 23 basis points.
What would have been the capital requirements if the FI had securitized the mortgage?
What would have been the capital requirements if the FI had securitized the mortgage?
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If the FI had securitized the mortgage it would have sold the mortgage to a special purpose vehicle ...
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
9780077641849, 77861663, 77641841, 978-0077861667
