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lana [24]
4 years ago
6

Borrowers who met certain requirements for mortgages, such as minimum income level relative to the total mortgage amount, could

obtain mortgages that were qualified to be securitized. Such mortgages were called_________________.
Business
1 answer:
AleksAgata [21]4 years ago
6 0

Answer:

Subprime or Alt-A mortgages

Explanation:

Generally, there are three types of mortgages: prime mortgage, subprime mortgage, and Alt-A mortgage.

Prime mortgages are mortgages that are usually given to people with excellent credit rating, who can meet all requirements and they are considered as high quality borrowers. Therefore, the interest rates they are offered usually relatively low.

Subprime mortgages are mortgages that are usually given to people with poor credit ratings or histories, who cannot meet all requirements to be given conventional mortgages and are considered as low quality borrowers.  Therefore, the interest rates they are offered usually relatively high because the mortgage is considered as the riskiest.

The full meaning of Alt-A mortgage is Alternative A Mortgages which is a type of mortgages for people whose credit ratings or risk profiles lie between prime and subprime. The holders can meet more requirements than the holders of subprime mortgage but not as much as the holders of a prime mortgage. This mortgage is riskier than the prime mortgage but less risky than subprime mortgage. Therefore, the interest rates it offered are therefore higher than what the holder of prime mortgage get but it lower than the interest rates offered to the holders of subprime mortgage.

Best of luck.

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POS card reader

Explanation:

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Under what conditions does servant leadership fail to have a positive impact on followers?
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D. When subordinates don’t want guidance from the leader

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3 years ago
What should you plan for first when creating a budget
alexira [117]

Answer:

CALCULATE EXPENSES

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4 0
3 years ago
Gunnar, the Director of Operations at Fantastic Foods, has worked with other managers over the years to set up groups and teams
qaws [65]

If Gunnar, the Director of Operations at Fantastic Foods.  One of the recent groups, which is also a team, is the dean search committee.

<h3>What is team?</h3>

Team are member of a group that come together in unity to resolve issue  and to achieve their set goals and objectives.

The recent group will be the dean search committee which aim is to interact or  communicate  frequently by making use of different communication  means over a period of several months.

Therefore  One of the recent groups, which is also a team, is the dean search committee.

Learn more about team here: brainly.com/question/11352260

#SPJ1

6 0
2 years ago
The future earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow 7% per year. Carpetto'
bearhunter [10]

Answer:

14.05%

Explanation:

Given that,

Beta = 1.3

Risk-free rate (Rf) = 9.5%

Return on the Market (RM) = 13%

According to CAPM approach:

Cost of common equity (RE):

= [Rf + β (RM – Rf)]

= [9.5% + 1.3 (13% - 9.5%)]

= [9.5% + 1.3 (3.5%)]

= [0.095 + 1.3 (0.035)]

= [0.095 + 0.0455]

= 0.1405

= 14.05%

Therefore, the firm's cost of common equity is 14.05%.

8 0
3 years ago
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