Because the after-tax yield of the AAA-rated insured bonds (7%) is greater than the after-tax yield of the GNMA
and FNMA servicing rules, unscheduled principal payments received by servicers during the preceding month are remitted to investors on the 15th and 18th of the current month, respectively.
Borrowers using loans backed by GNMA
may differ from those using loans supported by FNMA and FHLMC for another reason.
This correspondence between GNMA
pools and MRBs is on returns of principal, not mortgage prepayments.
We were certainly in the camp that thought rates would be rising and that the flight to quality [to Treasuries] would subside" said Michael Hoeh, senior portfolio manager of the Dreyfus GNMA
This form is the result of a data collection partnership made up of Fannie Mae, Freddie Mac, GNMA
This type of security is typically a single-class instrument such as a GNMA
However, to facilitate the implementation of the REMIC, MBA has heard that GNMA
plans to mandate that GNMA
I remittances be transmitted to security holders utilizing the ACH debit by a centralized processing agent.
Collateralized Mortgage Revenue Bonds (Haven Pointe Project) Series 2001A & Taxable Series 2001A, USD5.
5s and 9s will experience more substantial declines than higher coupons; prepayments on GNMA
securities will drop more than conventionals.