Yield Book released the Agency RMBS Prepayment Model v21.5 near the end of 2019. We held a client webinar on this model update and received numerous client feedback and questions concerning various aspects of the model. In this publication, we summarize some of the most frequently asked questions and provide detailed explanations.
This publication covers the primary second spread, servicer excess capacity, home affordability program, and the property inspection waiver modeling methodologies. We also provide performance tracking reports on major spec cohorts for two representative vintages as a pilot report of our planned more comprehensive monthly publications in near future. We hope this will provide more insights on the model update and help Yield Book clients better understand our agency prepayment model methodology.
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