Why are CMHC mortgages said to be "fully modified mortgage" pools?
A) CMHC backing insures bondholders against prepayment risk.
B) The CMHC modifies to mortgage pool to prevent it against interest rate risk.
C) CMHC backing allows for mortgages to be modified so they have longer terms and less chance of default.
D) The CMHC guarantees the payments of interest and principal even if the mortgages default.
E) The CMHC insures the higher risk mortgages in the pool against default.
Correct Answer:
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