What are the two categories of benchmark indexes used in adjustable-rate mortgages?
What will be an ideal response?
Two categories of reference rates have been used in adjustable-rate mortgages(ARMs):
(1) market-determined ratesand (2) calculated rates based on the cost of funds for thrifts. Market-determined ratesinclude the London Interbank Offered Rate (LIBOR), the 1-year Constant MaturityTreasury (CMT), and the 12-month Moving Treasury Average (MTA), a rate calculatedfrom monthly averages of the 1-year CMT. The two most popular calculated ratesare the Eleventh Federal Home Loan Bank Board District Cost of Funds Index (COFI)and the National Cost of Funds Index. Depository institutions prefer to hold ARMs intheir portfolios rather than FRMs because ARMs provide a better matching with theirliabilities.
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The stage of team development during which a group sets guidelines about issues like attendance and punctuality is the ______ stage.
A. forming B. storming C. norming D. adjourning E. performing
When determining the operational feasibility of a new system, the expected ease of transition from the old system to the new system should be considered
Indicate whether the statement is true or false
A firm is using ________ when it charges a high price for a new product with the intention of maximizing revenue
A) a skimming price B) trial pricing C) loss leader pricing D) penetration pricing E) promotion pricing
This is the discipline that seeks to understand how opportunities are discovered, created, and exploited, by whom, and with what consequences.
a. imagineering b. storyboarding c. social engineering d. entrepreneurship