What can you infer about safety of a non-government issued MBS with the following collateral? The current ‘loan to value

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answerhappygod
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What can you infer about safety of a non-government issued MBS with the following collateral? The current ‘loan to value

Post by answerhappygod »

What can you infer about safety of a non-government issued MBS
with the following collateral? The current ‘loan to value’ ratio is
125%; the borrower’s credit score and down payment at origination
was high; the loan is a ‘second lien’ on the home.
Group of answer choices
The bond is currently over-collateralized and relatively safe
from default.
[ Choose
]
False
Neither True or False
True
The value of the property securing the loan has decreased since
the loan was issued.
[ Choose
]
False
Neither True or False
True
The underlying loan is considered ‘sub prime’.
[ Choose
]
False
Neither True or False
True
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