26-38 Mortgage pools that are assumed to prepay at a rate of speed that is more rapid than the PSA model would indicate,are said to prepay at less than 100 percent PSA behavior because the mortgage life and balance will exist for a longer time.

Question

Quizplus · Accepted Answer

Mortgage pools that prepay at a more rapid rate than the PSA model indicates are said to prepay at greater than 100 percent PSA behavior because the mortgage life and balance will exist for a shorter time.

26-38 Mortgage Pools That Are Assumed to Prepay at a Rate