constant percent prepayment
- constant percent prepayment ( CPP)An expression of mortgage loan prepayments in annual terms. The single monthly mortality rate ( SMM) multiplied by 12. CPP annualizes SMM without reflecting the impact of compounding.
Financial and business terms. 2012.
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Constant Percent Prepayment — Annualized estimate of mortgage loan prepayments, computed by multiplying the average monthly prepayment rate by 12. This is used to determine cash flow in structured finance transactions, often referred to as the secondary mortgage market. It… … Investment dictionary
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CPP — constant percent prepayment (CPP) An expression of mortgage loan prepayments in annual terms. The single monthly mortality rate ( SMM) multiplied by 12. CPP annualizes SMM without reflecting the impact of compounding. See constant prepayment rate … Financial and business terms
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