o Loans made and intended to be sold by the originating lender or creditor to FNMA, GNMA, or FHLMC (or its successor); 7 or o Loans that are the subject of a home equity conversion mortgage or reverse mortgage issued by a lender or creditor subject to the regulation. 4
1 Draw the max line -- the one with as large a slope as you think reasonable (taking into account error bars), while still doing a fair job of representing all the data. Measure the slope of this line.  Calculate the uncertainty in the slope as one-half of the difference between max and min slopes.
(13.0 - 14.2) = - 1.2. 1.44. Variance then weights each squared deviation by its probability, giving us the following calculation: (0.1)*(3.24) + (0.3)*(0.64) + (0.3)*(0.04) + (0.3)*(1.44) =. Portfolio Variance. Now that we've gone over a simple example of how to calculate variance, let's look at portfolio variance.