26-80 Which of the following is true concerning an assumable mortgage?
A)The aggregate percent of the mortgage pool that has been prepaid prior to the month under consideration.
B)The mortgage contract is transferred from the seller to the buyer of a house.
C)The required interest spread of a pass-through security over a treasury when prepayment risk is taken into account.
D)A mortgage-backed bond issued in multiple classes or tranches.
E)Bonds collateralized by a pool of assets.

Question

Quizplus · Accepted Answer

An assumable mortgage is a type of mortgage in which the mortgage contract is transferred from the seller to the buyer of a house. This means that the buyer can "assume" the mortgage and take over the payments from the seller, without having to obtain a new mortgage.

26-80 Which of the Following Is True Concerning an Assumable