Which of the following statements regarding mortgage pass-through bonds (MPTBs) is FALSE?
1) MPTBs can be viewed as mortgage-backed bonds with the pass-through of principal and prepayment features of a mortgage pass-through security
2) Most MPTBs are based on residential mortgage pools and are generally overcollateralized
3) MPTBs represent an undivided equity ownership interest in a mortgage pool.
4) All of the above are false.