View Full Version : Actex Study Guide, Exam Three, Mortgage Prepayment models
10-17-2002, 01:26 PM
Perhaps an obvious question, but.......The Actex Life Con study guide talks about two models of mortgage prepayment in the annuities unit -- the Constant Prepayment Rate and the Public Securities Association models. These aren't really on the syllabus, are they? I couldn't find them anywhere....Thanks
10-17-2002, 01:39 PM
What? I've never heard of them.
Those are on the course 6 syllabus. What the hell do they have to do with life contingencies? Forget about them (for now).
10-17-2002, 04:29 PM
I suppose they relate to life contingencies in that mortgages are uncertain streams of payments -- uncertain in that prepayment is possible. Thus, you can weave a survival model into the valuation....Anyhow, I was pretty sure the models weren't important, was just checking......
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