Regarding prepayment rates, which of the following statements is least accurate?
A) The conditional prepayment rate (CPR) is the assumed rate at which the mortgage pool balance is prepaid.
B) The conditional prepayment rate (CPR) depends on characteristics such as past prepayment, along with the current and expected economic state of affairs.
C) The conditional prepayment rate (CPR) is the actual rate at which the mortgage pool balance is prepaid.
D) If the conditional prepayment rate (CPR) is converted into a monthly rate, it is called the single monthly mortality rate (SMM).
A) The conditional prepayment rate (CPR) is the assumed rate at which the mortgage pool balance is prepaid.
B) The conditional prepayment rate (CPR) depends on characteristics such as past prepayment, along with the current and expected economic state of affairs.
C) The conditional prepayment rate (CPR) is the actual rate at which the mortgage pool balance is prepaid.
D) If the conditional prepayment rate (CPR) is converted into a monthly rate, it is called the single monthly mortality rate (SMM).