Prepayment Speed

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Prepayment speed

Also called speed, the estimated rate at which mortgagors pay off their loans ahead of schedule, critical in assessing the value of mortgage pass-through securities.

Prepayment Speed

In mortgage-backed securities, the estimated rate at which mortgage borrowers will pay off the mortgages that underlie an MBS. The equivalent of the coupon on a mortgage-backed security is a percentage of the interest and principal paid on the mortgages backing the security. A riskassociated with mortgage-backed securities is that too many homeowners will pay off their mortgages with too much prepayment speed, depriving the holders of the MBS from future coupon payments.

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Mortgage Duration PSA Prepayment Rate Speed			The projected cash inflows and outflows used to derive the value of the servicing asset are based on numerous assumptions, including future interest rates, prepayment speeds of the underlying mortgages, and delinquencies. Lower single-family mortgage servicing fees: legitimate worry or ... by Harris, Brian / Mortgage Banking When interest rates are falling, homeowners tend to pay off their mortgages early (usually by refinancing at a lower rate), causing the prepayment speed to be faster than expected. Collateralized mortgage obligations: are they suitable for public ... by Larson, M. Corinne / Government Finance Review To arrive at a pool's base-case loss expectation, Fitch looked to each pool's 12-month average prepayment speed, default frequency, loss severity and delinquency trend. Fitch: U.S. MH RMBS Performance Stable Amid Housing Downturn; Actions ... by Business Wire			Premio su rimborso anticipato premises premises liability premium Premium Bond Premium Income premium put Premium Put Convertible Premium Raid Premium Recovery Period Prensa financiera Prenuptial Agreement preopening indication Prepackaged Bankruptcy Prepaid Expense prepaid expenses prepaid interest prepaids Prepayment prepayment clause Prepayment of Premiums prepayment option prepayment penalty prepayment privilege prepayment risk Prepayment Speed prepayments Prepetition Liability preplanning Prequalification prequalify Prerefunded Bond Prerefunding presale Presale Order Prescricao prescription present value Present Value Components Analysis Present Value Factor Present Value Index Present Value Interest Factor present value of annuity Present value of growth opportunities present value of one Presenting Bank Presentment preservation district Preservation of Capital President Presidente			prepay prepay prepay prepay Prepay Customer Management Tool prepayable prepayable prepaying prepaying prepayment prepayment prepayment prepayment prepayment prepayment clause Prepayment Clauses Prepayment meter Prepayment of Premiums prepayment option Prepayment penalties Prepayment penalties Prepayment penalties Prepayment penalty Prepayment penalty Prepayment penalty Prepayment penalty prepayment privilege Prepayment Privileges Prepayment Risk Prepayment Risks Prepayment Speed Prepayment Standard Assumption Prepayments Prepayments Prepayments Prepayments prepays prepays PREPCOM PREPCOMM prepend Prepenial prepense prepense prepensely prepensely preperitoneal preperitoneal hernia preperitoneal hernia preperitoneal hernia Prepetition Liabilities Prepetition Liability Prepetual motion Prepetual motion PREPI PREPIC Prepidil Endocervical Gel Preplaced-Aggregate preplaced-aggregate concrete preplanned air support preplanned mission request

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