Which of the following characteristics describes a static pool pass-through?
A)the loans are held in a trust.
B)monthly interest and principal payments are normally provided.
C)it is tax-exempt at the beneficiary level.
D)a and b only
E)all of the above

Question

Quizplus · Accepted Answer

A static pool pass-through involves loans that are held in a trust, and monthly interest and principal payments are normally provided to investors. However, it is not necessarily tax-exempt at the beneficiary level, so option C is incorrect. Therefore, the correct answer is D - both A and B describe a static pool pass-through.

Which of the Following Characteristics Describes a Static Pool Pass-Through