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Finding the Wall Street Journal Yield Rate

Finding the Wall Street Journal Yield Rate

For most multifamily mortgage loans with a yield maintenance option, the prepayment premium is based on a yield rate reported in The Wall Street Journal. The Payoff Calculator refers to this rate as the WSJ Yield Rate.

Follow the steps below to determine the correct rate to apply to your mortgage loan.

  1. Log on to the public pages of the online edition of The Wall Street Journal at http://online.wsj.com/home-page.

  2. From the Home page, click the Markets tab and then Market Data.

    The Market Data Center appears.

    Note: You may be able to access the Market Data Center directly from the Home page.

  3. On the menu bar, hold your mouse over the tab labeled Bonds, Rates & Credit Markets.

    A drop-down menu appears.

  4. Click Treasury Quotes.

    The U.S. Treasury Quotes table appears.

  5. Click Find Historical Data.

    A drop-down calendar appears.

  6. Select the effective date based on the language in the mortgage loan documents. Generally, the date is referenced in Schedule A attached to the note of the mortgage loan being paid off. For example “the twenty-fifth Business Day preceding (x) the Intended Prepayment Date…”

  7. Find the yield for the Treasury security with the maturity and coupon corresponding to the U.S. Treasury Security specified in Schedule A. This is the WSJ Yield Rate you enter in the Payoff Calculator.

Note:The terminology used by The Wall Street Journal differs from that used in the Payoff Calculator and in the mortgage loan documents. The following table shows you how to find the correct WSJ Yield Rate.

 

Sample language from Schedule A incorporated in the Note

…the yield rate (the “Yield Rate”) on the 7.875% U.S. Treasury Security due February, 2021 (the “Specified U.S. Treasury Security”), as the Yield Rate is reported in The Wall Street Journal on the fifth Business Day preceding (x) the date notice of prepayment is given to Lender where prepayment is voluntary, or (y) the date Lender accelerates the Loan…

 

 

The Wall Street Journal: U.S. Treasury Quotes
 

 

 

 

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