Question
What would be the impact on GNMA pricing if the pass-through was not fully amortized? What is the present value of a $11 million pool
What would be the impact on GNMA pricing if the pass-through was not fully amortized? What is the present value of a $11 million pool of 15-year mortgages with an 8.7 percent per annum monthly mortgage coupon if market rates are 5 percent? The GNMA guarantee fee is assumed to be 6 basis points, and the bank servicing fee is 44 basis points. a). Assume that the GNMA is fully amortized. What is the value of GNMA
c) PSA prepayment model (Excel needed)
Consider a mortgage pool of 500 residential mortgages of 200,000$ each. The coupon rate on the pass through is 11.5% annual rate compounded monthly. The life of the mortgages is 30 years each. The mortgage prepayment is estimated to be 150 PSA. The yield on newly issued par value GNMA pass through is 11.25%
For months 0 through 360 calculate the Opening balance, Interest, Principal, Prepaid Principal, Cash flows and the closing balance for this pool
What is the market value of this pool based on the above calculations?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Answer a Assuming the GNMA is fully amortized The present value of the 11 million pool of 15year mor...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
Document Format ( 2 attachments)
6642d378d5480_973830.pdf
180 KBs PDF File
6642d378d5480_973830.docx
120 KBs Word File
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started