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Loan count
1. A prepayment vector is used base on a CPR or PSA table.
Escrows
The escrows are inflated according to a separate inflation schedule
The average escrow balance is caluclated as follows:
The total segment average escrow is:
The actual escrow balance is not used in the present value calculation
4. Interest on P&I
Servicing Cost
Foreclosure Cost
2. The rate can be multiplied by a scendo vector over the life of the loan.
3. The PSA is simply the PSA rate times 6% adjusted for early lower
prepayment rates. If the PSA is used you can either:
4. The remaining vector is one minus the prepayments.
5. You can decide to deduct the foreclosures in addition to the
normal prepayments. This lowers the average loan count in
any period but does not include the loan life.
6. Ballon loans are treated as curtailments and no earnings occur
on the removed balances.
7. Sales can occur but these are treated as removed balances. All
analysis simply stops and the loan balance goes to zero.
Servicing revenues
Service fee less guarantee fee plus dollars per loan in servicing
The fee may be:
There may be more than one column to state the service fees.
LLFEE - The servicing fee expressed as an annual percent of the loan balance.
It is assumed that this fee is net of all guarantee fees and uncolecttable
fees. It is the net fee retained on this loan.
LLANC1 is only a percent of the balance it does not inflate.
LLANC2 is a second $/loan field
5. Interest earned on payoffs
6. Interest earned on escrow account balances
2. Prepayment cost
3. Late notice cost
4. Delinquent servicing cost
LLFLSH=(LLCNTF * LFLFOR * LFNCS )
LLFLPI=(LLCNTF * LFFCM * LLINTT * (1-FC_RPI))
LLFLTI=(LLCNTF * LFFCM * LLEDEP * (1-FC_RTI))
LLFLSV=(LLBALF * LFFCM * LVSFEE * (1-FC_RFEE))
LLFLSI=(LLCNTF * FC_IPLO * LLINTT)
LLFLSP=(LLBALF * FC_PBLO)