# constant prepayment rate

**constant prepayment rate ( CPR)**A measure of the historical or expected prepayment of principal on a mortgage or an MBS that expresses the prepayment as a constant proportion of the outstanding principal. The CPR is an annualized expression of the SMM that reflects compounding and is therefore more accurate.__See__single monthly mortality rate.__American Banker Glossary__

*Financial and business terms.
2012.*

### Look at other dictionaries:

**PSA Prepayment Rate**— The Bond Market Trade Association s Mortgaged Asset Backed Securities Division s prepayment model based on an assumed rate of prepayment each month of the then unpaid principal balance of a pool of mortgages. PSA is used primarily to derive an… … Financial and business terms**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 and single monthly… … Financial and business terms**Prepayment Model**— A model used to estimate the level of prepayments on a loan portfolio that will occur in a set period of time, given possible changes in interest rates. Prepayment models are based on mathematical equations and usually involve the analysis of… … Investment dictionary**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**PSA prepayment model**— is a prepayment model by the SIFMA (Securities Industry and Financial Markets Association) formerly known as Public Securities Association or PSA that assumes increasing prepayment rates for the first 30 months of the lifetime and constant rates… … Wikipedia**single monthly mortality rate**— ( SMM) A measure of the amount of monthly principal reduction in excess of the scheduled monthly principal payment. The SMM is simply the amount of prepaid principal in a given month expressed as a percentage of the principal balance at the… … Financial and business terms**Adjustable-rate mortgage**— A variable rate mortgage, adjustable rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit… … Wikipedia**interest-rate risk**— interest rate exposure The risk arising from changes in interest rates. In recent decades the different forms of interest rate risk have been the subject of much analysis, monitoring, and scrutiny. In the 1980s, for example, the savings and loan… … Accounting dictionary**interest-rate risk**— interest rate exposure The risk arising from changes in interest rates. In recent decades the different forms of interest rate risk have been the subject of much analysis, monitoring, and scrutiny. In the 1980s, for example, the savings and loan… … Big dictionary of business and management**CPR**— constant prepayment rate (CPR) A measure of the historical or expected prepayment of principal on a mortgage or an MBS that expresses the prepayment as a constant proportion of the outstanding principal. The CPR is an annualized expression of the … Financial and business terms