Ace the Ontario Mortgage Agent Exam 2026 – Unlock Your Future in Finance!

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What does a Mortgage Backed Security represent?

Facilitate the transaction to its successful completion (funding)

An investment in a pool of amortized residential mortgages

A Mortgage Backed Security represents an investment in a pool of amortized residential mortgages. This means that the security is backed by a collection of individual mortgages, providing investors with exposure to the income generated from the underlying mortgage payments. By holding a Mortgage Backed Security, investors receive a share of the interest and principal payments made by homeowners on the mortgages within the pool. This option correctly captures the essence of what a Mortgage Backed Security entails.

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A lender's remedy to obtain title to a defaulted property

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