Prepayment Vector definition
Prepayment Vector. The prepayment scenario assumed for Fixed Rate Mortgage Loans in determining the accrual of original issue discount on the Certificates for federal income tax purposes. The Prepayment Vector is described in the Prospectus Supplement, dated December 15, 1997, pursuant to which the Class A Certificates were offered.
Prepayment Vector. A 100% Prepayment Vector assumes that the outstanding balance of a pool of mortgage loans prepays at a rate of 4.00% conditional prepayment rate ("CPR") per annum in the first month of the life of such pool, such rate increasing by approximately (i) in the case of the Fixed Rate Mortgage Loans, an additional 1.9091% (precisely 21/11ths) per annum and (ii) in the case of the Adjustable Rate Mortgage Loans, 2.3636% (precisely 26/11ths) CPR per annum in each month thereafter until the twelfth month of the life of such pool, and such rate thereafter remaining at 25% and 30% CPR per annum for the Fixed Rate Mortgage Loans and the Adjustable Rate Mortgage Loans, respectively, for the remainder of the life of such pool. A CPR per annum represents an annualized constant assumed rate of prepayment each month of a pool of mortgage loans relative to its outstanding principal balance for the life of such pool.