A schedule endorsed by the Public Securities Association used to estimate the rate of prepayment associated with mortgage-backed securities over time. The prepayment of excess mortgage principal is calculated using an increasing rate over a 30-month period then a constant rate thereafter. The standard model, referred to as 100% repayment, assumes a 0.2% increase each month for 30 months followed by 6% thereafter.
Related information about PSA prepayment model:
- PSA prepayment model - Wikipedia, the free encyclopedia
PSA Prepayment Model is a prepayment model by the Bond Market Association formerly known as Public Securities Association or PSA that assumes ...
- Public Securities Association Standard Prepayment Model (PSA ...
... annualized prepayment rate of 0% in month zero, with 0.2% increases each month until peaking at 6% after 30 months. Also called "PSA prepayment model." ...
- Prepayment Model Definition | Investopedia
One of the most notable prepayment models is the PSA Prepayment Model by the Securities Industry and Financial Markets Association. The PSA model ...
- What is PSA prepayment model? definition and meaning
Definition of PSA prepayment model: A schedule endorsed by the Public Securities Association used to estimate the rate of prepayment associated with ...
- Bond Yield: Mortgage Backed Securities PSA Model - PSA ...
Aug 8, 2012 ... Mortgage Backed Securities PSA Model - PSA Prepayments. PSA Prepayment Model. The PSA is a numerical scale that is used to measure ...
- MBS Basics - Securitization.Net
Mar 31, 2006 ... 26 The PSA prepayment model takes its name from the Public Securities Association, the predecessor to The. Bond Market Association. Money ...
- Using Fixed-Rate Mortgage Pool Functions - MATLAB
The toolbox comes with a standard Bond Market Association (PSA) prepayment model and can generate multiples of standard prepayment speeds. The Public ...
- Quantifying Your Pre-payment Assumptions - eBriefing Article
PSA (Public Securities Association) - Prepayments are based on the PSA prepayment model (the assumption that the rate of prepayment increases by 20 basis ...