Spread Squeeze Test definition
Spread Squeeze Test. A test that is failed for any Mortgage Loan Group if ------------------- the Annualized Excess Spread for that Mortgage Loan Group (expressed as a percentage of the Pool Principal Balance of that Mortgage Loan Group as of the end of the Due Period preceding the related Due Period, as reduced (without duplication) by the amount of Principal Prepayments received through the end of the Prepayment Period preceding the related Prepayment Period) is less than 3.00%.
Spread Squeeze Test. The Spread Squeeze Test is satisfied for any date of determination thereof if (x) the 60+ Delinquency Percentage (Rolling Six Month) is less than 9.50% and (y) the Annual Loss Percentage (Rolling Six Month) for the six-month period immediately preceding the date of determination thereof is not greater than or equal to 1.75%.