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Old 11-04-2008, 06:11 PM
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Default Negative Funding Shortfall

Rick, your notes say that the funding shortfall cannot be less than zero. However, you use a negative funding shortfall later in the study guide.
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Old 11-04-2008, 06:16 PM
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Funding shortfall cannot be negative. If it happens it wipes out all shortfall and waiver bases, and the alternative definition of MRC is used.
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Old 11-04-2008, 06:16 PM
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Quote:
Originally Posted by colby2152 View Post
Rick, your notes say that the funding shortfall cannot be less than zero. However, you use a negative funding shortfall later in the study guide.
Nevermind, what you say is that the new shortfall amortization base can be negative by subtracting a previous shortfall/waiver from the current one. This results in a reduction in the MRC!
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Old 11-04-2008, 07:54 PM
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Quote:
Originally Posted by colby2152 View Post
Nevermind, what you say is that the new shortfall amortization base can be negative by subtracting a previous shortfall/waiver from the current one. This results in a reduction in the MRC!
I like when people read things more carefully!
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