Payment Calculations for Mortgage-Backed Securities

Product Overview

Payment Calculations for Single Family Mortgage-Backed Securities

The formulas listed below illustrate calculations of the interest payments and principal payments for Freddie Mac's Single Family mortgage-backed securities products.

Examples of how a July payment is calculated are depicted below for 45-day, 55-day and 75-day securities.

For 55-day securities, the "Payment Date" is the 25th day of each month, or if the 25th day is not a business day, the next business day applies.

For 45-day and 75-day securities, the "Payment Date" is the 15th day of each month, or if the 15th day is not a business day, the next business day applies.

July Payment Example 55-DAY SECURITIES

Interest Payment = (PAR) (June Factor) (Rate/12)

Principal Payment = (June Factor ? July Factor) (PAR)

45-DAY SECURITIES

Interest Payment = (PAR) (June Factor) (Rate/12)

Principal Payment = (June Factor ? July Factor) (PAR)

75-DAY SECURITIES

Interest Payment = (PAR) (May Factor) (Rate/12)

Principal Payment = (May Factor ? June Factor) (PAR)

DEFINITIONS: PAR - Original Security Balance at Issuance; Rate - Security Coupon Interest Rate; Factor - Eight digit decimal which represents the percentage of the original balance of the pool or tranche that is outstanding as of a given date

This product overview is not an offer to sell or solicitation of an offer to buy any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac's Information Statement and related supplements.

Continues



1

August 2019

July Payment Example

Record Date

Payment Date

Accrual Period

Calculations are based on a 30 day month and 360 day year. Consult your applicable Offering Circular Supplement to determine the accrual period that corresponds with your security.

UMBS, Supers, MBS REMICs and Strips

55-DAY

June

1 15 3300

July

1 2155 31

45-DAY

Participation Certificates (PC)

75-DAY May

June

1 15 3300

July

1 15 31

1 15 3301

June

1 15 30

July

1 15 31

REMIC Tranche (Fixed or Floater with Delay)

45-DAY June

June

55-DAY

1 15 3300

July

1 15 31

1 15 30

July

1 25 31

May

1 15 31

June

1 114 30

July

1 1155 31

75-DAY OR

May

1 15 3301

June

1 15 30

July

1 1155 31



2

Continues August 2019

45-DAY

June

1 15 30

July

1 14 1154

31

REMIC Tranche (Floater with Zero Delay)

55-DAY

May

June

1 25 30

July

1 24 25

31

1 15 30

Factor disclosed in first month is applicable to accrual period shown.

75-DAY

June

1 1145 15 30

July

1 14 1154

31

Ginnie Mae Backed REMICs

FIXED & FLOATER WITH DELAY

FLOATER WITH ZERO DELAY

June 30

July

1

June

Previous Payment Date

30

Floater with Zero Delay

July

Fixed & Floater with Delay

Payment Date

Payment Date

Ginnie Mae-backed REMICs have a number of different payment dates. Consult your applicable Offering Circular Supplement to determine the date that corresponds with your REMIC.

For additional information about Freddie Mac payment calculations and mortgage-backed securities, visit Freddie Mac's Web site at mbs or contact Investor Inquiry at investor_inquiry@.



3

August 2019

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download