For mortgage securities

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Reference no: EM132045473

1. Servicing a pool of loans may NOT include:

1) collecting monthly payments

2) maintaining an escrow account for property taxes and hazard insurance

3) Sending notices of default to the government

4) making claims to the mortgage insurance for losses on defaulted loans

2. For mortgage securities:

1) a change in the market rate of interest affects the rate used to discount the cash flows

2) a change in the market rate of interest affects the time patterns of the cash flows

3) the amount and timing of the cash flows are contingent upon the interest rates

4) a. and b. only

5) a, b, and c

Reference no: EM132045473

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