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MORTGAGE ANALYSIS SERVICES
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Mortgage Yield and Price .... MYP
This is a series of calculations for an investor. Essentially the "run" shows investors the yield on an mortgage investment given an aggregate interest rate, service rate and price. As pools of mortgages are made available to the investment community, this service shows, based on several factors and assumptions, what the yield is based on the gross rate, service rate, term, delay days and prepayment assumption. A typical sheet assumes 8 prepaid terms (that can be named by the customer), and 55 prices, also named by the customer. The calculation shows the yield for each combination of price and prepayment.
Reverse Annuity Mortgages (RAMS)
A reverse annuity mortgage is where the consumer "sells" their home to a lender over time. The parties agree to a monthly disbursement. The lender pay's the home owner this disbursement every month. At this point we need to distinguish between the HUD program and the Massachusetts H.O.M.E. program. The HUD program allows the consumer to stay in their home until they move, or die. Carleton has a software program to disclose all the HUD requirements. Soft Seconds
Soft second mortgages are a way for consumers to borrow the down payment for a primary mortgage. Typically these loans are designed to have low payments for 10 years, then a normal 20-year payoff. The consumer payment starts off low and gradually increases over 9 years until the 10th year the consumer is making the full payment. After 10 years, the consumer starts with a 20-year fully amortizing payment. Carleton can help lenders that do not have the capacity to find the Truth-In-Lending Act disclosures for a loan where several payments are made not based on an interest rate.
HELOC Historical Service
When a bank offers a HOME Equity Line of Credit, and their product(s) has a variable rate feature, once a year the bank is required under TILA 12 CFR 226.5b to make up disclosures that include an example of the minimum payment requirements for a $10,000 advance taken out 15 years ago. The history has to show the rates that would have applied and how the loan would have played out given today's rules of construction. The banks must also include a minimum payment example at the current rate, and minimum payment example for the maximum rate. These numbers need to be updated once a year. Carleton provides a custom program for each bank, runs 3 (or more) schedules using their program rules, one showing the rates as they've changed over the most recent 15-year period, one using the most recent rate, and one using the maximum rate. And Carleton will even send out reminders on the anniversary date.
Amortization Schedules and Services:
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