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Wednesday, July 21, 2010

Current Face

Current Face
The current par value of a mortgage-backed security (MBS). Current face is determined by multiplying the current pool factor by the mortgage-backed security's original face value. A mortgage-backed security's current face represents the outstanding principal balance (or its outstanding face value) of the mortgage's underlying the security.

If the MBS pays interest and principal on payment dates, the current face will decline after each payment is made.

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