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LOS a: Compare and contrast the ffice:smarttags" />U.S. mortgage-backed market with the European mortgage-backed market. ffice ffice" />
Q1. During a fixed income securities panel session on the European and U.S. mortgage markets, one of the panelists made the following comments.
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Statement 1: |
The mortgage debt-to-GDP ratio in Europe is significantly lower than it is in the U.S. |
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Statement 2: |
The percentage of European citizens that own their own home is slightly less than the percentage of U.S. citizens that own their own home. |
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Statement 3: |
Whole loan products in the U.S. have the advantage of not having to be marked to market. |
Which of the following most accurately describes the accuracy of the panelists statements?
Statement 1 Statement 2 Statement 3
A) Correct Correct Correct
B) Incorrect Correct Incorrect
C) Correct Correct Incorrect
Correct answer is A)
All of the statements are accurate.
Q2. During a fixed income securities panel session on the European and U.S. mortgage markets, one of the panelists made the following statements.
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Statement 1: |
In the U.S. market, data availability is fairy constant and standardized credit scoring systems are well established. |
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Statement 2: |
The Fair Issac Corporation (FICO) credit scoring system used in the U.S. considers fewer categories of consumer behavior than most of the existing European scoring systems. |
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Statement 3: |
Accounting differences between Europe and the U.S. have a significant impact on the relative size and growth of the European whole loan market. |
Which of the following most accurately describes the accuracy of the panelist’s statements?
Statement 1 Statement 2 Statement 3
A) Correct Correct Correct
B) Incorrect Correct Incorrect
C) Correct Incorrect Incorrect
Correct answer is C)
Statement 2 is incorrect because the FICO credit scoring system considers more categories of consumer behavior than most of the European credit scoring systems.
Statement 3 is incorrect because even though there are accounting differences between Europe and the U.S., these differences do not have a significant impact on the size or growth of the whole loan market.
Q3. During a panel discussion on the European and U.S. mortgage markets, one of the panelists made the following statements.
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Statement 1: |
Retail deposits represent the major source of mortgage debt funding in the U.S. mortgage markets. |
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Statement 2: |
On a percentage basis, home ownership is slightly greater in Europe than it is in the United States. |
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Statement 3: |
The mortgage debt-to-GDP ratio in Europe is significantly lower than in United States. |
Which of the following most accurately describes the accuracy of the panelist’s statements?
Statement 1 Statement 2 Statement 3
A) Correct Incorrect Correct
B) Incorrect Correct Incorrect
C) Incorrect Incorrect Correct
Correct answer is C)
Statement 1 is incorrect because securitized debt and agency debt are the major sources of mortgage debt funding in the U.S. mortgage markets.
Statement 2 is incorrect because home ownership, on a percentage basis, is slightly greater in the U.S. than Europe.
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发表于 2009-3-23 17:36
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