Consider a GNMA mortgage pool with principal of $20 million. The maturity is 30 years with a
Question:
Consider a GNMA mortgage pool with principal of $20 million. The maturity is 30 years with a monthly mortgage payment of 10 percent per year. Assume no prepayments. (LG 24-4)
a. What is the monthly mortgage payment (100 percent amortizing) on the pool of mortgages?
b. If the GNMA insurance fee is 6 basis points and the servicing fee is 44 basis points, what is the yield on the GNMA pass-through?
c. What is the monthly payment on the GNMA in part (b)?
d. Calculate the first monthly servicing fee paid to the orig- inating Fls.
e. Calculate the first monthly insurance fee paid to GNMA.
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Related Book For
Financial Markets And Institutions
ISBN: 9780078034664
5th Edition
Authors: Anthony Saunders, Marcia Cornett
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