Select Payment Mortgage Matched Advance (SPMMA)

Similar to the Regular MMA, but the borrower specifies the prepayment percentage to be paid annually prior to borrowing:

  • Allows the borrower to match fund fixed-rate mortgages and reduce associated interest rate and prepayment risk—borrower determines the level of risk protection through selected CPR speed
  • Borrower must make annual prepayment of principal, equal to the previously specified percentage
  • Used as a financing source for fixed rate mortgage loans and mortgage-backed securities

 

Maturity
10, 15 or 20 years; prepayment speeds can be 0%, 5%, 10%, 15% or 20%
Rate
Remains fixed rate for entire term of maturity
Accrual Basis
30 / 360 day basis
Interest and Principal are Paid
Monthly (payment is first credited to interest due, then to principal reduction)
Principal Prepayment Policy
Annually, the borrower must make a prepayment of principal equal to the CPR percentage established by the borrower times the outstanding principal balance on the payment date; any additional prepayment may be subject to prepayment fee; monthly payment is reset after any prepayment of principal
Submission of Application
A Select Payment MMA application is required for each borrowing

To learn more about our Advance products, contact Jeff Berryman or Lisa Wishart at 800-828-4191.

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