Reference no: EM132812608

Problem 1: How does an issuer of mortgage-backed security pay off debt obligations?

A Through the assets of the lending institutions

B Through the sale of mortgages to consumers

C Through an increase in interest rates on mortgages

D Through the influx of cash from mortgage payments

E Through the closing of a mortgage loan

Problem 2: When do investors expect a higher rate of return on their investments?

A When the investment is stable

B When the investment is for a larger share of the offering

C When the investment requires less upfront capital

D When there is a short time commitment

E When there is greater uncertainty