5.5

Question 0

A _______ is a financial instrument whose interest and principal payments are either derived directly from the cash flows of an underlying pool of mortgages, or are “collateralized” by such a pool.

Answer 0

Mortgage backed security (MBS)

Question 1

Mortgage backed securities (MBSs) allow small investors with the ability to diversify across a pool of _______.

Answer 1

Loans

Question 2

Sometimes mortgage-backed securities are called _______ securities.

Answer 2

Pass-through

Question 3

On the settlement statement, a ______ to the seller decreases the net.

Answer 3

Debit

Question 4

_____ require the buyer to have proof of homeowner’s insurance at or before the closing.

Answer 4

Lenders

Question 5

The ____ and _______ must disclose known material facts about the property to the buyer.

Answer 5

Seller and agent

Question 6

If the seller’s side of the closing statement shows a _____ the seller is charged-or “owes”- that amount.

Answer 6

Debit

Question 7

A _____ is a group of investors that owns real estate.

Answer 7

Syndication

Question 8

A _____ is the most common form of deed.

Answer 8

Warranty Deed