Which of the following is NOT a factor that may cause the prepayment risk on a pool of mortgages to differ from the PSA's assumed pattern?
A)The age of the mortgage pool.
B)Geographic location.
C)Seasons in the year in which the mortgage was originated.
D)Full or partial amortization of the payments.
E)Assumability of mortgages in the pool.

Question

Quizplus · Accepted Answer

While factors such as the age of the mortgage pool, geographic location, full or partial amortization of the payments, and assumability of mortgages in the pool can all influence prepayment risk, the seasons in which the mortgages were originated is not typically a significant factor. Therefore, choice C is the correct answer.

Which of the Following Is NOT a Factor That May