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Tuning Support

MBS Prepayment Model Tuning Parameter Recommendations
[all v5.0 and earlier versions]

Please note that some vendor systems have specific instructions for adjusting AD&Co tuning parameters. Please click here for vendor-specific information.

AGENCY LOAN TYPES

ARMS/Hybrids

Loan Type

Scale

FNMA, FHLMC 3/1

0.80

FNMA, FHLMC 5/1

0.70

FNMA, FHLMC 7/1

0.65

FNMA, FHLMC 10/1

0.80

Fixed-Rate

Loan Type

Slide

Turnover

Refi

Burnout

FNMA, FHLMC 10

1.0

1.75

0.25

1.0

FNMA, FHLMC 15

1.0

0.75

0.75

1.0

FNMA, FHLMC 20

1.0

1.4

0.15

1.0

FNMA, FHLMC 30

0.99

1.0

0.5

1.0

GNMA 15

1.0

1.25

1.0

0.25

GNMA 30

1.0

1.35

1.0

1.0

All Agency loan types with parameters not listed above should be set to 1.0 with the exception of slide which should be set to 0.


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