Finance
Mortgage Whole Loan
November 7, 2020
Derivatives
Mortgage Prepayment Floor
November 10, 2020

An OTC option (interest rate cap) that provides the holder, usually a mortgage company, with protection from a potential loss in return if the prepayment rate in a specific mortgage pool exceeds a preset strike level relative to a published prepayment rate.

A mortgage prepayment cap is the opposite of a mortgage prepayment floor.

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