11-24.Payments of principal from a pool of mortgages in excess of scheduled amortization is referred to as:

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Payments of principal from a pool of mortgages in excess of scheduled amortization is referred to as prepayment. This occurs when borrowers make extra payments towards the principal amount, reducing the overall loan amount and shortening the loan term. Prepayments can affect the cash flow of mortgage-backed securities and must be taken into account when analyzing investments in these securities.

11-24Payments of Principal from a Pool of Mortgages in Excess