Given the investor concerns about pre-payment speeds
, working with FHA to create this trial-modification initiative was clearly in the best interest of borrowers, issuers and investors.
2) Due to the significant reduction in long-term interest rates during the fourth quarter of 2008, the fair value of the Company's mortgage servicing rights declined substantially, as projected pre-payment speeds
of the underlying loans increased dramatically.
The premiums described above will be earned in future periods, but may differ materially from the estimated amounts used in determining current adjusted book value due to changes in market interest rates, refinancing or refunding activity, pre-payment speeds, policy changes or terminations, credit defaults, and other factors that management cannot control or predict.
Estimated future premiums may change from period to period due to changes in par outstanding, maturity or other factors that management cannot control or predict that result from market interest rates, refinancing or refunding activity, pre-payment speeds, policy changes or terminations, credit defaults, or other factors.
Muller Data/TSIS will utilize FactorCast to deliver not only its own securities data, but also several FinPub value-added data elements, including generic level and pool-specific pre-payment speeds for MBSs and ARMs.
Muller Data/TSIS can now create value-added data fields, such as CPR (Constant Pre-Payment Rate) and PSA (Public Securities Association) pre-payment speeds for inclusion in their standard product offerings.