The prepayment model developed by the Public Securities Association is an empirically based model that reflects an average rate of prepayment based on the past experience of pools of FHA-insured mortgages

Question

Quizplus · Accepted Answer

The statement is true. The PSA prepayment model is based on historical data and reflects an average rate of prepayment for pools of FHA-insured mortgages.

The Prepayment Model Developed by the Public Securities Association Is