TRUE / FALSE. Conforming loan requirements are set by each bank and can vary widely.

		TRUE
		FALSE

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

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

	A.	FALSE
	B.	TRUE

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

	A.	TRUE
	B.	FALSE

TRUE / FALSE. In a given FRM fully-amortized mortgage, the scheduled payment remains the same over time. The portion of the scheduled payment that goes to principal increases over time and the portion of the scheduled payment that pays interest decreases over time.

	A.	TRUE
	B.	FALSE