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Consider an MPT with the following characteristics: Number of mortgages in the pool: 100 All 100...

Consider an MPT with the following characteristics:

  • Number of mortgages in the pool: 100
  • All 100 mortgages are fully amortizing 15 year FRM with monthly payments
  • All mortgages have a 4% interest rate
  • Average mortgage balance: $180,000
  • Prepayment is according to 200% PSA
  • There is no servicing fee
  • The beginning pool balance in month 15 is $16,356,436.86

a) What is the regularly scheduled payment in month 15?

b) How much of the scheduled payment received is attributable to interest in month 15?

c) How much of the scheduled payment received is attributable to principal in month 15?

d) What is the dollar amount of the prepayment in month 15?

e) How much cash do investors get in month 15?

f) Ariel has a 5% share in this MPT. How much will he receive in month 15?

g) What is the pool balance at the end of month 15 (beginning of month 16)?

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Expert Solution

jeff jeffy answered 1 year ago
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