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 ?
The affirmation of the master servicer rating and Outlook reflect the company's established master servicing operation, current support for the platform, consistent Reg AB and USAP results, and Fitch's observations regarding portfolio runoff.
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.
M2 EQUITYBITES-November 12, 2012--Student loan portfolio runoff negatively impacts Nelnet net income(C)2012 M2 COMMUNICATIONS http://www.
Using RediRefi, lenders can maximize their refinance campaigns, manage portfolio runoff and minimize loan fallout without having to make significant investments in fixed costs.
The consumer businesses - Retail Financial Services (RFS) and Card Services & Auto (CS) - produced solid results despite a continuation of portfolio runoff.
2 billion portfolio runoff, resulting in a higher overall index denominator.
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.
3 billion from eight transactions in August significantly exceeded last month's portfolio runoff of $2.
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.
mortgage banks with servicing portfolios or marketing databases, that want to reduce portfolio runoff or to attract new mortgage customers through refinancing.