Question

Given the following information of the mortgage pool that backs a MPT (same as Question 8), what is the starting pool balance for month 33 of this security? Round your final answer to two decimals (Hint: N=360 when t=1, N=359 when t=2, N=358 when t=3 ...).

• 30 year FRM, fully amortizing, monthly payments

• WAC: 5%

• Servicer/Guarantee fee: 0.5%

• Prepayment assumption: 300% PSA

• Loans were not seasoned before entering the pool

• MBS has been active for a few years in collecting payments from borrowers and making payments to investors

• Starting pool balance at month 32: $52, 234, 988

Answer 1