What is Mortgage Accrual Rate?

Question: What is Mortgage Accrual Rate?

Answer: The mortgage rate at which interest is calculated. For a particular remittance date for an Mortgage Back Security (MBS) pool, it is the mortgage interest rate due under the terms of the mortgage note during the period beginning on the second day of the month preceding the remittance date and ending on the first day of the month in which such remittance date occurs, less the lender’s servicing spread.

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