Consider an MPT with the following characteristics:

• Number of mortgages in the pool: 50
• All 50 mortgages are fully amortizing 15 year FRM with yearly payments
• All mortgages have a 5% interest rate
• Average mortgage balance: $400,000
• Prepayment rate is CPR = 5%
• Servicing fee taken off the initial pool balance in every period is 0.5%

a) What is the regularly scheduled payment in year 1?

b) How much of the scheduled payment received is attributable to interest in year 1?

c) How much of the scheduled payment received is attributable to principal in year 1?

d) What is the dollar amount of the prepayment in year 1?

e) What is the servicing fee in year 1?

f) How much cash do investors get in year 1?

g) Eshe has a 20% share in this MPT. How much will she receive in year 1?

h) What is the pool balance at the end of year 1 (beginning of year 2)?