Portfolio Runoff

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 ?
However, what has really become much better understood over the last six months is that no matter what happens this year, most life companies are stuck for at least the next three to five years in a low cycle as portfolio runoff can't be reinvested at levels over the average book yield.
The organizational structure suitably addresses the company's loan servicing responsibilities, and the company has growing capacity, as a result of continuing portfolio runoff, to accommodate new loans.
But as new issuance outpaced loan portfolio runoff and paydown, the actual delinquency percentage remained flat at 4.
Using RediRefi, lenders can maximize their refinance campaigns, manage portfolio runoff and minimize loan fallout without having to make significant investments in fixed costs.
Management continues to reinvest excess liquidity as a result of the loan portfolio runoff primarily in short term investment securities so as to provide liquidity for future loan growth.
The consumer businesses - Retail Financial Services (RFS) and Card Services & Auto (CS) - produced solid results despite a continuation of portfolio runoff.
Management has reinvested excess liquidity as a result of the portfolio runoff primarily in short term investment securities so as to provide liquidity for future loan growth as we continue the restructuring of the existing loan portfolio and transition into a more diversified loan portfolio.
The portfolio runoff of the last several years inspired us to develop this program," said Mark Stamm, president of Greater Atlantic Mortgage Corporation.
Fitch is concerned with and will closely monitor high turnover levels that were due to staff 'right sizing' because of portfolio runoff as well as its limited CMBS portfolio.
mortgage banks with servicing portfolios or marketing databases, that want to reduce portfolio runoff or to attract new mortgage customers through refinancing.
Management has reinvested excess liquidity as a result of the portfolio runoff in short term investment securities so as to provide liquidity for future loan growth as we continue the restructuring of the existing loan portfolio under the business plan and transition into a more diversified loan portfolio with lower credit risk.
Historically, refinance booms have brought fast-paced originations growth and some market share redistribution attributable to servicing portfolio runoff.