Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question # 1 (10 Points): Mortgage Pass Through Security Number of mortgages in initial pool Average mortgage balance Initial mortgage pool balance Initial Pricing Prepayment

image text in transcribed
image text in transcribed
Question # 1 (10 Points): Mortgage Pass Through Security Number of mortgages in initial pool Average mortgage balance Initial mortgage pool balance Initial Pricing Prepayment Rate Assumption, PSA 100 Mortgage rate 8.40% Mortgage Amortization Years Servicing and Guarantee Fee 0.696 Coupon rate 7.80% PAR Market interest rate 7.80% Pieces of MPT Securities 1,000 Alternative Lower PSA Alternative Higher PSA 150 Prepayment Speeds for Annual Payment and Amortization: Yr 1 Yr 2 Yr 4 and Beyond 100 PSA 1.30 3.70 15.25 6.00 For Simplicty, apply the prepay speeds of the suitable PSA to the beginning of year mortgage balance to project the prepayment for the year, realized at the end of the year. The Total Scheduled Mortgage Payment (received by the Pool) in Year 1 $2,345,024 Under Alternative Lower PSA, the Pool Factor at the end of Year 1 is: 0.68536268 ANSWER: FILL UP THE GRID BELOW. PSA 100 (b) 100% PSA End of Year Principal EOY Pool due to Year Balance Prepayment (d) Scheduled Principal and Interest Pmts to issuer (e) Total Principal Guarantee and interest and Pmts to Issuer Service Fees (b)+(c) (f) Total Pmt to Payments Individual to Investors Investor (d)-(e) (F)/ ver or higher) PSA that is consistent with rate change. What is the dollar gain (+) or loss (-), rounded to two Discount rate Age Value of MPT Value of MPT 6.BOX 7.BOX ver or higher) PSA that is consistent with rate change. What is the dollar gain (+) or loss (-), rounded to twe Discount rate Age Value of MPT Value of MPT 6.80% 7.80% 8.8096 Lower PSA (a) (b) Principal due to Prepayment (d) (e) Total Principal Guarantee and interest and Pmts to Issuer Service Fees (b)+(c) (a)x(fee96) Principal and Interest Pmts to Issuer Pool Year Balance (f) (8) Total Pmt to Payments Individual to investors Investor (d)-(e) (F)/# Discount rate Age Value of MPT Value of MPT 6.8096 7.8096 8.80% Higher PSA (a) (b) (c) Principal due to Prepayment (d) (e) Total Principal Guarantee and Interest and Pmts to issuer Service Fees (b)+(c) (a)x(fee96) Principal and Interest Pmts to issuer EOY Pool Year Balance (f) (8) Total Pmt to Payments Individual to investors investor (d)-(e) (f)/ Discount rate Age Value of MPT Value of MPT 6.BOX 7.3O' 8.80) Question # 1 (10 Points): Mortgage Pass Through Security Number of mortgages in initial pool Average mortgage balance Initial mortgage pool balance Initial Pricing Prepayment Rate Assumption, PSA 100 Mortgage rate 8.40% Mortgage Amortization Years Servicing and Guarantee Fee 0.696 Coupon rate 7.80% PAR Market interest rate 7.80% Pieces of MPT Securities 1,000 Alternative Lower PSA Alternative Higher PSA 150 Prepayment Speeds for Annual Payment and Amortization: Yr 1 Yr 2 Yr 4 and Beyond 100 PSA 1.30 3.70 15.25 6.00 For Simplicty, apply the prepay speeds of the suitable PSA to the beginning of year mortgage balance to project the prepayment for the year, realized at the end of the year. The Total Scheduled Mortgage Payment (received by the Pool) in Year 1 $2,345,024 Under Alternative Lower PSA, the Pool Factor at the end of Year 1 is: 0.68536268 ANSWER: FILL UP THE GRID BELOW. PSA 100 (b) 100% PSA End of Year Principal EOY Pool due to Year Balance Prepayment (d) Scheduled Principal and Interest Pmts to issuer (e) Total Principal Guarantee and interest and Pmts to Issuer Service Fees (b)+(c) (f) Total Pmt to Payments Individual to Investors Investor (d)-(e) (F)/ ver or higher) PSA that is consistent with rate change. What is the dollar gain (+) or loss (-), rounded to two Discount rate Age Value of MPT Value of MPT 6.BOX 7.BOX ver or higher) PSA that is consistent with rate change. What is the dollar gain (+) or loss (-), rounded to twe Discount rate Age Value of MPT Value of MPT 6.80% 7.80% 8.8096 Lower PSA (a) (b) Principal due to Prepayment (d) (e) Total Principal Guarantee and interest and Pmts to Issuer Service Fees (b)+(c) (a)x(fee96) Principal and Interest Pmts to Issuer Pool Year Balance (f) (8) Total Pmt to Payments Individual to investors Investor (d)-(e) (F)/# Discount rate Age Value of MPT Value of MPT 6.8096 7.8096 8.80% Higher PSA (a) (b) (c) Principal due to Prepayment (d) (e) Total Principal Guarantee and Interest and Pmts to issuer Service Fees (b)+(c) (a)x(fee96) Principal and Interest Pmts to issuer EOY Pool Year Balance (f) (8) Total Pmt to Payments Individual to investors investor (d)-(e) (f)/ Discount rate Age Value of MPT Value of MPT 6.BOX 7.3O' 8.80)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting An Essential Guide To Learning Accounting Quickly

Authors: Greg Shields

1st Edition

1978341873, 978-1978341876

More Books

Students also viewed these Accounting questions