Residential mortgages-pool balance at beginning of the month

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• Imagine you have a pool of 30 year residential mortgages (FRMs, fully amortizing), WAC=4%, monthly payments

• The pool balance at the beginning of the month is 285,634,760

• The mortgages, on average, have already made three years of payments (i.e. they are about to make their 37th payment)

• If this month (t=37), the following mortgages enters into default, what is the realized CDR for this pool?

• Mortgage 1: Beginning of the month balance 200,000; Mortgage 2: Beginning of the month balance 354,000

Round your answer to two decimal places (For example, if your answer is ten and a half percent, enter 10.50)

Reference no: EM131304969

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