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Current Production Rate

 
Financial & Investment Dictionary: Current Production Rate

Top interest rate allowed on current Government National Mortgage Association mortgage-backed securities, usually half a percentage point below the current mortgage rate to defray administrative costs of the mortgage servicing company. For instance, when homeowners are paying 61⁄2% on mortgages, an investor in a GNMA pool including those mortgages will get a current production rate of 6%.

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Financial & Investment Dictionary. Dictionary of Finance and Investment Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more