14. A property insurance
a) is the insurance homeowners have to buy to protect their properties from natural disaster
b) is usually required for loans with high (more than 80%) LTVS
c) protects the MBS owner in the case a property is destroyed by fire
d) only (a) and (c) are true.
15. Banks normally accept mortgage applications that has
a) a higher than 80% LTV ratio
c) a PTI ratio that is lower than 35%
16. A pass-through (PT) security is
a) a proportionately distributed securitization of mortgage loans by the conduits
b) considered less risky than before, since information is more easily available these days
c) predominantly sold by government agencies like GNMA
d) all of the above are true.
b) a PTI ratio that is higher than 35%
d) only (a) and (b) are true.