PAC Component
4 definitions

A Component that is designed to receive distributions of principal using a predetermined schedule derived by assuming two constant prepayment rates for the underlying Mortgage Loans or the HECMs related to the Participations in the case of HECM MBS. These two rates are the endpoints for the Structuring Range for the PAC Component. The endpoints must be at least 30 percentage points above and below the pricing speed. The PAC Components in any Series or Security Group may be subdivided into different categories (e.g., PAC I, PAC II) having different structuring ranges. The structuring range for a PAC I Component of a Series or Security Group usually is wider than the structuring range for a PAC II Component of such Series or Security Group, as applicable.

FK Reading Ease
46.5

FK Grade Level
High School
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  • A Component that is designed to receive distributions of principal using a predetermined schedule derived by assuming two constant prepayment rates for the underlying Mortgage Loans. These two rates are the endpoints for the Structuring Range for the PAC Component. The endpoints must be at least 30% points above and below the pricing speed. The PAC Components in any Series or Security Group may be subdivided into different categories having different structuring ranges. The structuring range for a PAC I Component of a Series or Security Group usually is wider than the structuring range for a PAC II Component of such Series or Security Group, as applicable.

    FK Reading Ease
    39.6

    FK Grade Level
    College
  • Flag
  • A Component that is designed to receive distributions of principal using a predetermined schedule derived by assuming two constant prepayment rates for the underlying Mortgage Loans. These two rates are the endpoints for the Structuring Range for the PAC Component. The endpoints must be at least 30% points above and below the pricing speed. The PAC Components in any Series or Security Group may be subdivided into different categories having different structuring ranges. The structuring range for a PAC I Component of a Series or Security Group usually is wider than the structuring range for a PAC II Component of such Series or Security Group, as applicable.

    FK Reading Ease
    39.6

    FK Grade Level
    College
  • Flag
  • A Component that is designed to receive distributions of principal using a predetermined schedule derived by assuming two constant prepayment rates for the underlying Mortgage Loans. These two rates are the endpoints for the Structuring Range for the PAC Component. The endpoints must be at least 30 percentage points above and below the pricing speed. The PAC Components in any Series or Security Group may be subdivided into different categories having different structuring ranges. The structuring range for a PAC I Component of a Series or Security Group usually is wider than the structuring range for a PAC II Component of such Series or Security Group, as applicable.

    FK Reading Ease
    38.4

    FK Grade Level
    College
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