26-69 Which of the following is the principle source of prepayment risk on a typical FNMA mortgage-backed pass-through security?
A)Refinancing.
B)Default risk.
C)Housing turnover.
D)Non-assumable mortgages.
E)All of the above.

Question

Quizplus · Accepted Answer

Prepayment risk on a typical FNMA mortgage-backed pass-through security is primarily driven by refinancing, housing turnover, and non-assumable mortgages.

26-69 Which of the Following Is the Principle Source of Prepayment