Prepayments Panel
Use to associate prepayment rates with the current account.
These four Prepayments options determine how prepayments are calculated:
- None
- Use this option to indicate that there are no prepayments for the current account.
- Manual
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Use this option to add prepayment scenarios and rates manually. You can choose Prepayment Type and Prepay Driver rate. The following choices are available for Prepayment Type:
- SMM (Single Monthly Mortality)
- PSA (Public Securities Association Standard Prepayment Model)
- CPR (Conditional Prepayment Rate)
- % of Total Balance
- Historical
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Use this option to base prepayment speeds on a specified number of historical time periods. You can choose Prepayment Type and Prepay Driver rate. The following choices are available for Prepayment Type:
- SMM
- % of Total Balance
You can also enter percentages to adjust for prepayment changes in rising and falling rate environments.
Select the Historical Details link to view the Historical Prepayment Summary page. You can add new months or export the grid. Select the amount in the Ending Balance column for a month to open the Historical Prepayment Detail page to view additional details for the month. You can modify the Adjust Prepay amount for an ID number and export the grid.
- Prepay Tables
- Use this option for prepayment tables that are user-defined or based on third-party data. You can specify a Prepay Driver rate. If any basic, mortgage, or advanced prepay tables exist, then you can choose the one that you want to associate with the current account. You can modify an existing prepayment table on .