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19. (10 points) Imagine you have a pool of 30 year residential mortgages (FRMs, fully amortizing), WAC-5%, monthly payments. The pool balance at the beginning
19. (10 points) Imagine you have a pool of 30 year residential mortgages (FRMs, fully amortizing), WAC-5%, monthly payments. The pool balance at the beginning of the month 50,333,954. The mortgages, on average, have already made two years of payments d.e are about to make their 25th payment) is If this month (t-25 ), the following mortgage enters into default, what is the realized CDR for this pool? Interpret the meaning of this number Mortgage 1: Beginning of the month balance 400,000 19. (10 points) Imagine you have a pool of 30 year residential mortgages (FRMs, fully amortizing), WAC-5%, monthly payments. The pool balance at the beginning of the month 50,333,954. The mortgages, on average, have already made two years of payments d.e are about to make their 25th payment) is If this month (t-25 ), the following mortgage enters into default, what is the realized CDR for this pool? Interpret the meaning of this number Mortgage 1: Beginning of the month balance 400,000
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