Consider a GNMA mortgage pool with principal of $ 20 million. The maturity is 30 years with
Question:
a. What is the monthly mortgage payment (100 percent amortizing) on the pool of mortgages?
b. If the GNMA insurance fee is 6 basis points and the servicing fee is 44 basis points, what is the yield on the GNMA pass- through?
c. What is the monthly payment on the GNMA in part (b)?
d. Calculate the first monthly servicing fee paid to the originating FIs.
e. Calculate the first monthly insurance fee paid to GNMA.
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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Related Book For
Financial Markets and Institutions
ISBN: 978-0077861667
6th edition
Authors: Anthony Saunders, Marcia Cornett
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