Question
On October 1, 2005, Fannie Mae issued a mortgage pass-through security and the prospectus supplement stated the following: FANNIE MAE MORTGAGE-BACKED SECURITIES PROGRAM SUPPLEMENT TO
- On October 1, 2005, Fannie Mae issued a mortgage pass-through security and the prospectus supplement stated the following:
FANNIE MAE | |
MORTGAGE-BACKED SECURITIES PROGRAM | |
SUPPLEMENT TO PROSPECTUS DATED JULY 01, 2004 | |
$464,927,576.00 | |
ISSUE DATE OCTOBER 01, 2005 | |
SECURITY DESCRIPTION FNMS 05.0000 CL-844801 | |
5.0000 PERCENT PASS-THROUGH RATE | |
FANNIE MAE POOL NUMBER CL-844801 | |
CUSIP 31407YRW1 | |
PRINCIPAL AND INTEREST PAYABLE ON THE 25TH OF EACH MONTH | |
BEGINNING NOVEMBER 25, 2005 | |
POOL STATISTICS | |
SELLER | WELLS FARGO BANK, N.A |
SERVICER | WELLS FARGO BANK, N.A |
NUMBER OF MORTGAGE LOANS | 1986 |
AVERAGE LOAN SIZE | $234,312.06 |
MATURITY DATE | 10/01/2035 |
WEIGHTED AVERAGE COUPON RATE | 5.7500% |
WEIGHTED AVERAGE LOAN AGE | 1 mo |
WEIGHTED AVERAGE LOAN TERM | 360 mo |
WEIGHTED AVERAGE REMAINING MATURITY | 359 mo |
WEIGHTED AVERAGE LTV | 73% |
WEIGHTED AVERAGE CREDIT SCORE | 729 |
Use the above information to answer the below questions.
- What does the pass-through rate of 5% for this security mean?
- What is the average note rate being paid by the borrowers in the loan pool for this security?
- Why does the pass-through rate differ from the average note rate paid by the borrowers in the loan pool for this security?
- What is the pool number for this security, and why is the pool number important?
- The maturity date for this security is shown as 10/01/2035. An investor in this security might be concerned about its very long maturity (30 years). Why is the maturity date a misleading measure of the securitys maturity?
- If an investor purchased $15 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 $12 million, how much is the investor entitled to receive?
- Every month a pool factor would be reported for this security. If the pool factor for some month is 0.92, what is the outstanding mortgage balance for the loan pool for that month?
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