From f07e0a086ae0d8455ef7f41105d22843b572564a Mon Sep 17 00:00:00 2001
From: Chris Diesch <chris@quarterhomes.com>
Date: Tue, 8 Apr 2025 19:43:39 -0600
Subject: [PATCH] Add minimum mre value

---
 __init__.py | 2 ++
 1 file changed, 2 insertions(+)

diff --git a/__init__.py b/__init__.py
index cd03222..7b5fdaf 100644
--- a/__init__.py
+++ b/__init__.py
@@ -5,6 +5,7 @@ GROSS_RENT_YIELD: float = 0.03686
 RISK_POOL_ALLOCATION: float = 0.01
 LOSS_SEVERITY: float = 0.19
 RECOVERY_RATE: float = 0.9
+MIN_MRE: float = 0.05
 
 
 def get_default_risk_by_fico(consumer_fico: int, loan_to_value: float) -> float:
@@ -107,6 +108,7 @@ def compute_mre(home_value: float,
     mre += at_risk_value - recovery_value
     # make the mre a percentage of the home value
     mre /= home_value
+    mre = max(mre, MIN_MRE)
     return mre