Gross WAC

Gross WAC (weighted average coupon) is the average interest rate on a pool of loans, weighted by outstanding balance, before deducting the servicing spread kept by the originating lender. Net WAC is what the participation buyer receives after the servicing spread. For example, a pool with a 3.00% gross WAC and a 0.25% servicing spread passes a 2.75% net WAC to the buyer.

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