Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On October 1 , 2 0 0 5 , Fannie Mae issued a mortgage pass - through security, and the prospectus supplement stated the following:FANNIE
On October Fannie Mae issued a mortgage passthrough security, and the prospectus supplement stated the following:FANNIE MAEMORTGAGEBACKED SECURITIES PROGRAMSUPPLEMENT TO PROSPECTUS DATED JULY $ISSUE DATE OCTOBER SECURITY DESCRIPTION FNMS CL PERCENT PASSTHROUGH RATEFANNIE MAE POOL NUMBER CLCUSIP YRWPRINCIPAL AND INTEREST PAYABLE ON THE TH OF EACH MONTH BEGINNING NOVEMBER POOL STATISTICSSELLERWELLS FARGO BANK, NASERVICERWELLS FARGO BANK, NANUMBER OF MORTGAGE LOANSAVERAGE LOAN SIZE$MATURITY DATEWEIGHTED AVERAGE COUPON RATEWEIGHTED AVERAGE LOAN AGE moWEIGHTED AVERAGE LOAN TERM moWEIGHTED AVERAGE REMAINING MATURITY moWEIGHTED AVERAGE LTVWEIGHTED AVERAGE CREDIT SCORE Source: Fannie Mae.aWhat does the passthrough rate of for this security mean?bWhat is the average note rate being paid by the borrowers in the loan pool for this security?cWhy does the passthrough rate differ from the average note rate paid by the borrowers in the loan pool for this security?dWhat is the pool number for this security, and why is the pool number important?eWhat is the prefix for this security, and what does a prefix indicate?fThe maturity date for this security is shown as An investor in this security might be concerned about its very long maturity years Why is the maturity date a misleading measure of the securitys maturity?gIf an investor purchased $ million principal of this security and, in some month, the cash flow available to be paid to the security holders after all fees are paid is $ million, how much is the investor entitled to receive?hEvery month, a pool factor would be reported for this security. If the pool factor for some month is what is the outstanding mortgage balance for the loan pool for that month?iWhy does the weighted average loan term differ from the weighted average remaining maturity?jWells Fargo Bank, NA is identified as the seller and the servicer. What does that mean?kWhat does the following mean: MORTGAGEBACKED SECURITIES PROGRAM SUPPLEMENT TO PROSPECTUS DATED JULY
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started