KIC000018 - General Description Mortgage Pass-Through of an...

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General Description of an Agency Mortgage Pass-Through Security (continued) I:l A weigh,,:d-awrag':i co"pon rate (WAC) is found by weighting the nOle fate of each mortgage loan in the pool by Ihe amount of'the mortgage olJtstandin!:. o A It'eighl,,J-(l''''nl~ llIallfrily(WAMj is found by weighting the remaining numher of months to maturity for each ~~I:f ~?Rn in the. pool by the amount of the morteage outstanding. (Jl)f~ on r: o After origination oftheMBS, the W AM of a pool ch~n[les_ Fannie ' Mae and Freddie Mac report the remaining number of months 10 maturity for R loan pool, which they refer to as m!ighled avemge remaining "W{l/rity(\l.' ARM). o Both Fannie Mae and Freddie Mac also report the weighted average of the number of month; since the origination of the ~ecurily for the loans in the pool. This measure is called Ihe weighl"d m'tlmge loan age (W ALA). Issuers of Agency Pass-Through Securities o Agency pass-through securities are issued by i. Governmental Nalirmal
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This note was uploaded on 09/06/2011 for the course FIN 428 taught by Professor Hood during the Fall '11 term at Iowa State.

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KIC000018 - General Description Mortgage Pass-Through of an...

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