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Real Estate Finance, I would really appreciate the answer for below questions. Regarding to PSA and Mortgage investment. 1. PSA Given the following information, answer
Real Estate Finance,
I would really appreciate the answer for below questions. Regarding to PSA and Mortgage investment.
1. PSA Given the following information, answer the following questions for month 12 of this security -15 year FRMs, monthly payments -PSA 150 -4.5% mortgage rate, 0.5% servicing fee, 3.75% discount rate - Pool balance at the beginning of month 12: $75,946,124 - The loans were not seasoned before entering the pool A: What is the projected prepayment amount in month 12? B: What the total interest received by the issuer in month 12? C: What is the payment to investors in month 12? D: If instead the WAM of loans at issuance was 178 months (i.e. the loans were seasoned for 2 months before the security was formed), what would be the prepayment in month 12 of the security? E: If you were told that month 12 of this security corresponded to the calendar month of January (and you were told that the appropriate seasonal adjustment factor for January was 75%) would this increase or decrease the expected cash flows to investors you found in part C? By how much
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