QUESTION 2

TRUE / FALSE. Fannie and Freddie guarantees protect investors against prepayment risk.

	A.	TRUE
	B.	FALSE

QUESTION 3

TRUE / FALSE. If the lender in an MBS goes bankrupt, the investor assets within the SPV are unprotected from the bankruptcy judgment

	A.	TRUE
	B.	FALSE

QUESTION 4

TRUE / FALSE. Under the PSA prepayment model, borrowers prepay less in the first few months after taking a loan relative to later months

	A.	TRUE
	B.	FALSE