single monthly mortality rate
- single monthly mortality rate
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 beginning of the month. It is not commonly quoted; however, an annualized SMM, called the constant prepayment rate or CPR, is commonly quoted. American Banker Glossary
Financial and business terms.
2012.
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Single Monthly Mortality - SMM — In mortgage backed securities (MBSs), this is the percentage of the principal amount of mortgages that are prepaid in a given month. For investors of MBSs, prepayment of mortgages is usually undesirable since future interest is foregone. This is… … Investment dictionary
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… … Financial and business terms
rate — The cost of debt service paid by a borrower or issuer to a lender or investor. The rate is expressed as an annual percentage of the amount borrowed. For some notes and bonds that pay interest semiannually, the semiannual interest due to the… … Financial and business terms
SMM — 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… … 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
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
SMM — may mean: * Solar Maximum Mission * System Management Mode * Standard Method of Measurement * Single Marketing Method * Soft Magnetic Materials Conference * Science Museum of Minnesota * S Methylmethionine * Simulated Method of Moments, a… … Wikipedia
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
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