Consider a GNMA mortgage pool with principal of $20 million. The maturity is 30 years with a

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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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Financial Markets And Institutions

ISBN: 9780078034664

5th Edition

Authors: Anthony Saunders, Marcia Cornett

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Question Posted: Jul 24, 2024 09:00 AM

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Consider a GNMA mortgage pool with principal of $20 million. The maturity is 30 years with a

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Financial Markets And Institutions

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