Pool factor

In finance, a pool factor is the amount of the initial principal of the underlying mortgage loans that remain in a mortgage-backed security transaction. It is expressed as a factor of one that is used to indicate the remaining principal balance. Pool factors are only used to describe specific classes of securities, namely pooled asset-backed securities (ABSs) and mortgage-backed securities (MBSs) whose component payments are returned to investors on a monthly basis. Pool factors are published monthly in the US for Ginnie Mae, Fannie Mae, and Freddie Mac mortgage-backed securities.