Probing the Depth of Mortgage Pools
Article Abstract:
Federal Housing Administration (FHA) mortgage background is the most commonly accepted way to assess Government National Mortgage Association (GNMA) Mortgage Backed Securities. This is especially true for thirty-year pools. There may be some limitations in its application to FHLMC pools, fifteen-year pools, and private mortgage pools of conventional loans. FHA loans do not easily mirror those of conventional loans. FHA can be assumed, and there are maximum amount ceilings. The Constant Per cent Prepayment (CPP) method is an innovation in assessment which is like proprietary methodology employed by financial firms, and may well prove to be a superior form of evaluation. A sample pool is analyzed. CPP can be problematic when applied to amortizing mortgage pools, but where there is an original pool balance, orignal term, and interest rate, CPP rates can be established. Internal derivation of CPP can be found in mortgage pools or GNMA pools. Various mortgage models and graphs are featured so that CPP application is clearer.
Publication Name: Mortgage Banking
Subject: Real estate industry
ISSN: 0730-0212
Year: 1984
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Certified Mortgage Bankers Discuss Loan Production
Article Abstract:
Responses from five certified mortgage bankers representing five different geographic regions across the nation indicate that incentive plans for loan orginators vary widely. In some banks loan originators receive salary plus commission and in other cases they receive only commission. These five bankers being interviewed generally were not totally comfortable with the compensation plans for these important loan officers, recognizing that during slack times and under poor general economic conditions these valuable employees suffer.
Publication Name: Mortgage Banking
Subject: Real estate industry
ISSN: 0730-0212
Year: 1984
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