Portfolio Runoff

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Portfolio Runoff

A reduction in the mortgages represented in a mortgage-backed security as a result of prepayment of some of the mortgages in it. This can reduce the yield on an MBS and, at times, force the security holder to reinvest proceeds at a lower coupon rate than the MBS paid. Most mortgage-backed securities provide safeguards against portfolio runoff unduly affecting yields. See also: Prepayment risk.
References in periodicals archive ?
Nationstar is one of the largest servicers in the United States and operates an integrated loan origination business that mitigates servicing portfolio run-off and improves credit performance for loan investors.
Nationstar's integrated loan origination business mitigates servicing portfolio run-off and improves credit performance for loan investors.
While we are in the process of investing the equity offering proceeds and reinvesting portfolio run-off, there has been an increase in our low-yielding cash position.
Most servicers have responded to portfolio run-off by hunting for bulk servicing buys or industry consolidation plays, or opening the spigot on new loan origination.
The increase in earnings was mainly the result of lower operating expenses due to the absence of certain non-recurring expenses, which were incurred in 2000, partially offset by lower earnings due to portfolio run-off and the impact of asset sales.
Leverages Sales Channels to Reduce Portfolio Run-Off
However, the level of portfolio run-off raises concern over the potential growth of fixed costs relative to diminishing servicing fee income.
HFC`s overall degree of liquidity is enhanced by its diverse range of funding sources that include an extensive commercial paper program, long-term debt, securitization funding and portfolio run-off.
In addition, Nationstar operates an integrated loan origination business, enabling Nationstar to mitigate servicing portfolio run-off and improve credit performance for loan investors.
The company's primary sources of funding include portfolio run-off, long-term debt, receivable securitizations and commercial paper.
43 percent and portfolio run-off, consisting of prepayments and scheduled principal payments, was at an annualized rate of 14.
In addition, Nationstar operates an integrated loan origination platform, enabling Nationstar to mitigate servicing portfolio run-off and improve credit performance for loan investors.