Servicing a pass-through security refers to
A)an FI processing of all payments.
B)an FI provision of clearing services to set up the pass-through.
C)broker/dealer services provided by the FI to the ultimate holders of the pass-through.
D)guarantee by the FI of all principal and interest payments.
E)an FI provision of liquidity services to the ultimate holders of the pass-through.

Question

Quizplus · Accepted Answer

Servicing a pass-through security refers to an FI processing of all payments, including principal and interest, on behalf of the investors in the security. This involves collecting payments from the borrower and distributing them to the investors.

Servicing a Pass-Through Security Refers to