Calculate the following items for a newly issued, $400 million outstanding balance mortgage pool that is comprised of 30-year mortgages. The pass-through rate is 7.5% and the WAC is 8.125%. Prepayment speed is 100 PSA.
a. Find the SMM for Month 1:
b. What is the scheduled monthly mortgage payment for Month 1 paid by homeowners? (hint: use your calculator's TVM buttons)
c. What is the interest payment to the MBS pass-through holders (overall) for Month 1?
d. What is the estimated principal prepayment for Month 1?