PSA \ A 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 implied prepayment speed of new production loans, a 100% PSA assumes a prepayment rate of 2% per month in the first month following the date of issue, increasing at 2% per month thereafter until the 30th month. Thereafter, 100% PSA is the same as 6% CPR.
PSA / a 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 implied prepayment speed of new production loans, a 100% psa assumes a prepayment rate of 2% per month in the first month following the date of issue, increasing at 2% per month thereafter until the 30th month. thereafter, 100% psa is the same as 6% cpr.
PSA