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mrfence

03/15/20 6:01 PM

#598467 RE: Donotunderstand #598458

Ummmm... people pay off their mortgage when they refi so the person that owns the MBS with that mortgage in it get's their principle plus any early payment points written into it. If the majority of loans in any MBS are paid off the holder of that security is likely to take their proceeds back to the MBS auction to bid on another one since they're making a lot of money doing it with little risk :-)