Of the following, which form of mortgage securitization is used the least?

1. CMO B. Mortgage-Backed Bond C. Mortgage Pass-Through D. Home Equity Loan E. Second Mortgage

7. Which of the following statements about mortgage markets is/are true?

1. Mortgage companies service more mortgages than they originate. I Servicing fees typically range from 2% to 4%. II Most mortgage sales are with recourse. IV. The government is involved in the residential mortgage markets.

1. I, III, and IV only B. II, III, and IV only C. I, II, and IV only D. II and III only E. I and IV only

8. Which of the following statements about GNMA is/are true?

1. GNMA provides timing insurance. I GNMA creates pools of mortgages and issues securities. II GNMA insures only FHA, VA, and FmHA loans. IV. GNMA requires that all mortgages in the pool have the same interest rate.

1. I, II, III, and IV are true B. I, III, and IV only C. I, II, and III only D. II, III, and IV only E. III and IV only

9. Mortgage fees paid by the homeowner at, or prior to, closing upon the purchase of a house typically include all but which one of the following?

1. Application fee B. Title search fee C. Title insurance fee D. Appraisal fee E. Prepayment penalty

10. As compared to fixed-rate mortgages, ARMs result in which of the following for the lender?

1. Higher interest rate risk I Lower default risk II Greater prepayment penalty fees

1. I, II, and III B. I and II only C. II and III only D. I and III only E. None of the above