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Paydown Factor

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Paydown Factor
In mortgage-backed securities, the amount of the principal in the underlying mortgage pool that is repaid each month, expressed as a percentage of the original total principal. Ginnie Mae requires all issuers of mortgage-backed securities to publish their paydown factors.


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The average paydown factor, measured as the ratio of the current tranche balance to the original balance, is 93% for tranches with a Negative Outlook, 79% tranches with a Stable Outlook, and 29% for tranches with a Positive Outlook.
Although most transactions are seasoned less than two years, the paydown factors, due to the recent high prepayment environment, range between 45% to 80%,.
 
 
 
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