26-35 A good news effect of increased mortgage prepayments on a mortgage pool caused by decreasing market interest rates includes the receipt of fewer scheduled interest payments.

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The good news effect of increased mortgage prepayments due to decreasing market interest rates is that the mortgage pool can be reinvested at lower rates, but it does result in the receipt of fewer scheduled interest payments, which is typically considered a negative effect.

26-35 a Good News Effect of Increased Mortgage Prepayments on a Mortgage