Question

Given the following information of the mortgage pool that backs a MPT, what is the dollar amount of prepayment in month 32? Round your final answer to two decimals. • 30 year FRM, fully amortizing, monthly payments • WAC: 5% • Servicer/Guarantee fee: 0.5% • Prepayment assumption: 300% PSA • Loans were not seasoned before entering the pool • MBS has been active for a few years in collecting payments from borrowers and making payments to investors • Starting pool balance at month 32: $52, 234, 988

Answer 1

Solution Model ve can calcuwlate the conditional Pae-Payment ช04e CPR upto 30 mond hs PSA the cPR Can va but 30 months ceR ll be Constant ie, 6% foð PS4 13 % Fbon CeR we can calculate the Singla mobtgoemostat 丨.cy % Balance at the start ot Ehe 32 month = $543 349 88 , NOW ng interest rote of 11.5% and Ehe eme o matuey 360-3

oe Can calculade êhe monthly yme yment 98 7100 Inte est Paid monthly-16%)1LX54g349 88 emonth 20338) So Painciple paid v 32 nd month 227209-20 338/ $ 83828 Pool balance at the staad of Ehe mondh 335d 549.34988 χ(l-SMA)-83828 5, 31, 61,706 .