What is the impact on GNMA pricing if a pass-through is not fully amortized? What is the
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What is the impact on GNMA pricing if a pass-through is not fully amortized? What is the present value of a $10 million pool of 15-year mortgages with an 8.5 percent per year monthly mortgage coupon if market rates are 5 percent?
The GNMA guarantee fee is 6 basis points and the FI servicing fee is 44 basis points. (LG 25-4)
a. Assume that the GNMA pass-through is fully amortized.
b. Assume that the GNMA pass-through is only half amortized.
There is a lump sum payment at the maturity of the GNMA pass-through that equals 50 percent of the mortgage pool’s face value.
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Related Book For
ISE Financial Markets And Institutions
ISBN: 9781265561437
8th International Edition
Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts
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