Given the following information on a MPT (same set-up as previous question), what is the servicing fee
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Question:
• 10 year FRM, fully amortizing, annual payments.
• No prepayment or default
• 100 loans in the pool
• Average starting balance of $500,000.00/loan
• Mortgage rate 4.50%
• Servicing fee of 0.50% of starting outstanding pool balance
What is the total cash flow available to investors in year 2?
Related Book For
Managerial Economics and Business Strategy
ISBN: 978-0071267441
7th Edition
Authors: Michael R. baye
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