What is a specified pool?

What is a specified pool?

Specified pools are bonds created using borrower characteristics such as credit scores, loan size or geographic distribution, designed to provide more certainty on when the underlying mortgages will be paid off.

What is specified pool MBS?

Specified pools are those MBS pools which exhibit superior or, in some cases, inferior convexity than generic pools, to-be-announce (TBA). The rules which determine a specified pool are somewhat exhaustive. Thus, rather than provide a complete run down of each I will focus on one sector, the loan balance sector.

What is a specified pool Payup?

Given the projected stable behavior of these loans, investors are willing to pay a premium above generic To Be Announced (TBA) security prices for pools of loans of this type. The premium over a TBA security is referred to as the specified pool pay-up.

What is a pool of mortgages?

A mortgage pool is a group of mortgages held in trust as collateral for the issuance of a mortgage-backed security. A mortgage pool is a group of mortgage loans held as collateral in a trust, usually for the issuance of mortgage-backed securities.

What are TBA pools?

A to-be-announced (TBA) trade is effectively a contract to buy or sell mortgage-backed securities (MBS) on a specific date. It does not include information regarding the pool number, the number of pools, or the exact amount involved in the transaction, which means the underlying mortgages are not known to the parties.

What is the pool number and what does this pool prefix mean?

Key Takeaways. An MBS pool number is a number or alphanumeric character assigned to a mortgage-backed security (MBS) by the issuer. Typically six digits long, these codes are used to identify the MBS and its issuer and access information on the security.

What is uniform MBS pool?

UMBS are passthrough securities, each representing an undivided interest in a pool of residential mortgages. Freddie Mac offers 30-year fixed-rate UMBS in addition to 20-year, 15-year, and 10-year securities. UMBS are backed by fully amortizing mortgages and pay on a 55-day delay schedule.

What is a Payup?

1. A swap for a security with a higher yield. For example, an investor may swap a bond with a certain face value and coupon for another bond with an equal face value but a higher coupon. One refers to the extra funds the investor yields from the higher coupon as a payup.

What is mortgage TBA?

How is mortgage pool calculated?

The pool factor is calculated by dividing the outstanding principal balance (current face) by the original principal balance (original face).

What is a securitized pool?

Securitized Pool means each pool of receivables directly or indirectly transferred by UAFC or UAC to a securitization vehicle in a structured finance transaction involving prime automobile installment sales contracts and installment notes and security agreements, similar to the Contracts, beginning with and including …

What is the legal definition of a pool?

Legal Definition of pool (Entry 2 of 2) : to combine (as assets or votes) in a common form or effort especially : to combine (interests) so as not to have a merger of companies considered a purchase for accounting purposes.

Which is the best synonym for the word pool?

Synonyms of pool (Entry 2 of 3) 1 a body of persons at work or available for work. a large pool of applicants for the summer internship. Synonyms for pool. force, help, labor force, manpower, personnel,

When do MBS pools receive specified pay-ups?

MBS pools typically receive specified pay-ups when the underlying loans have characteristics that make the borrower less likely to refinance as compared to other loans with similar note rates. For example, a loan with an initial loan balance of less than $85,000 creates lower financial incentives for the borrower to refinance on a

What is the definition of a pool of light?

1 : a small deep body of usually fresh water. 2 : something like a pool (as in shape or depth) The lamp cast a pool of light.