Although it is often stated that Ginnie Mae issues mortgage-backed securities, why is that technically incorrect?
Answer to relevant QuestionsWhat are the different types of agency pass-through securities? Suppose that a PAC bond is created assuming prepayments speeds of 80 PSA and 350 PSA. If the collateral pays at 100 PSA over its life, what will this PAC tranche’s average life be? What is the difference between a REMIC and a CMO? Explain the effect on the average lives of sequential-pay structures of including an accrual tranche in a CMO structure. What is the purpose of the step-down provisions in a securitization?
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