Basics of Fannie Mae Single-Family MBS
term of the mortgage. Certificates for fixed-rate MBS are normally issued in 50 basis point increments (e.g. 4.0%, 4.5%, 5.0%, etc.). The coupon that is paid to the investor is known as the “pass-through” rate and is lower than the interest rate paid by the borrower on the underlying loans. ................
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