The CPR on a Mortgage Pool Refers to the Expected

question 25

True/False

The CPR on a mortgage pool refers to the expected default rate per year on mortgages in the pool.

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Definitions:

Deterred

Discouraged from taking an action due to fear of negative consequences or obstacles.

Catharsis Effect

The process of releasing, and thereby providing relief from, strong or repressed emotions, often discussed in therapeutic contexts.

Positive

Characterized by the presence or possession of features or qualities rather than their absence.

Negative

A term often used to denote the absence or opposition of a condition, quality, or action.