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Psa

• Is the Public Securities Association. It is an association of banks, brokers, and dealers who underwrite or sell bonds. These bonds include: U.S. treasuries, agencies, municipals, and mortgage backed securities. In particular, this organization sets standards and practices for the mortgage backed market. Among these standards are the PSA Prepayment Models and assumptions.

 
 Embedded terms in definition
 Agencies
Market
Mortgage backed securities
Mortgage
Municipals
Prepayment
Psa prepayment
Securities
Sell
Treasuries
Underwrite
U
 
 Referenced Terms
 48 hour rule: The requirement that all pool information, as specified under the Psa Uniform Practices, in a TBA transaction be communicated by the seller to the buyer before 3 p.m. EST on the business day 48-hoursprior to the agreed upon trade date.

 Good delivery and settlement procedures: Refers to Psa Uniform Practices such as cutoff times on delivery of securities and notification, allocation, and proper endorsement.

 Psa prepayment: A prepayment model based on an assumed rate of prepayment each month of the then unpaid principal balance of a pool of mortgages. Psa is used primarily to derive an implied prepayment speed of new production loans, a 100% PSA assumes a prepayment rate of 2% per month in the first month following the date of issue, increasing at 2% per month thereafter until the 30th month. Thereafter, 100% PSA is the same as 6% CPR.Is the model or the speed for a mortgage backed security. A 100 percent Psa speed assumes a prepayment rate of .2 percent starting with the first after origination and continuing until the thirtieth month. Thereafter the model assumes a prepayment rate of 6 percent.

 Psa prepayment: A prepayment model based on an assumed rate of prepayment each month of the then unpaid principal balance of a pool of mortgages. Psa is used primarily to derive an implied prepayment speed of new production loans, a 100% PSA assumes a prepayment rate of 2% per month in the first month following the date of issue, increasing at 2% per month thereafter until the 30th month. Thereafter, 100% PSA is the same as 6% CPR.Is the model or the speed for a mortgage backed security. A 100 percent Psa speed assumes a prepayment rate of .2 percent starting with the first after origination and continuing until the thirtieth month. Thereafter the model assumes a prepayment rate of 6 percent.

 Public securities administration: Abbreviated Psa. The trade association for primary dealers in U.S. government securities, including MBSs.

 
 Related Terms
 Psa prepayment

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