New View Advisors Introduces HREMIC Prepayment Data

Starting with the May 2014 reporting period, New View Advisors is introducing monthly distribution of prepayment data for HREMIC securities. The securities are listed in chronological order, by class, and prepayment speeds use the Dollar Amount Method.

The Dollar Amount Method measures prepayment rates by the dollar amount repaid rather than the number of loans or participations that pay off in a given period.  Each HREMIC security corresponds to a group of one or more HMBS pools, or fractions thereof.  The prepayment speed of each HREMIC security is equal to the weighted average of the prepayment speeds of these underlying HMBS, weighted by the unpaid balance of each HMBS pool.

Through May 2014, more than $21.5 billion of HREMICs have been issued. The report can be found here.

In addition to Series, Group, and Class, other data fields include Original Principal Balance, Current Principal Balance, Security Factor, 1, 3, 6, and 12-month Constant Prepayment Rates, Current Interest Rate, Principal Type, Bond Class Interest Type, CUSIP, Final Distribution Date, Underlying Collateral Type, and Underlying Collateral WAPA (Weighted Average Participation Age).

Customized reports are available by subscription.

HREMIC collateral consists of HMBS, which are Ginnie Mae guaranteed pass-through securities backed by pools of participations of HECMs, which are FHA-insured reverse mortgages.

New View Advisors compiled this data using publicly available Ginnie Mae sources.

 

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