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.
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Fed could be closer to balance on its portfolio runoff than previously thought, according to a WSJ article that suggests with rate policy on hold for now the topic could be more actively discussed at next week's FOMC meeting.
Fitch-rated new issuance volume of $7.1 billion from eight transactions in July doubled portfolio runoff of $3.5 billion, resulting in a higher overall index denominator.
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.
But as new issuance outpaced loan portfolio runoff and paydown, the actual delinquency percentage remained flat at 4.34 percent in August, the ratings firm said.
Fitch-rated new issuance volume of USD 4.3bn outpaced USD 3.5bn in portfolio runoff.
Berkadia's employee base has continued to decrease commensurate with portfolio runoff. As of March 31, 2018, Berkadia maintained a master and primary servicing staff of 561 employees, down from 607 and 675 employees in 2017 and 2016, respectively.
M2 EQUITYBITES-November 12, 2012--Student loan portfolio runoff negatively impacts Nelnet net income(C)2012 M2 COMMUNICATIONS http://www.m2.com
Using RediRefi, lenders can maximize their refinance campaigns, manage portfolio runoff and minimize loan fallout without having to make significant investments in fixed costs.
We also believe new issuance volume will remain strong and continue to outpace portfolio runoff. Less than $9 billion within the Fitch-rated universe is expected to mature by YE 2018, including defeased loans.
"The portfolio runoff of the last several years inspired us to develop this program," said Mark Stamm, president of Greater Atlantic Mortgage Corporation.
It is this detail that separates the current boom from past refi waves and, in fact, presents servicers with a great opportunity to thrive despite the threat of portfolio runoff.
The affirmations also reflect Fitch's view that the announced transaction to acquire PHH Corporation (PHH) offers Ocwen the opportunity to improve margins through economies of scale, reduce fixed costs on a combined basis by eliminating redundant corporate overhead and public company costs, and provides potential growth opportunities to offset portfolio runoff. On Feb.