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Pooled securities that provide for payments received from mortgagors, minus servicing costs and certain fees, to be passed through to those holding the securities.

True
False

User Lukeg
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1 Answer

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Final answer:

The statement is True. Pooled securities that provide for payments received from mortgagors, minus servicing costs and certain fees, to be passed through to those holding the securities are known as mortgage-backed securities (MBS).

Step-by-step explanation:

The statement is True. Pooled securities that provide for payments received from mortgagors, minus servicing costs and certain fees, to be passed through to those holding the securities are known as mortgage-backed securities (MBS). MBS are created by pooling together a large number of mortgage loans and turning them into securities that can be sold to investors. The payments made by the mortgage borrowers are then passed through to the investors who hold the MBS.

User Shoyeb Sheikh
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