Business and Personal Finance Dictionary

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• SINGLE MONTHLY MORTALITY RATE (SMM)
  
  A measure of the amount of monthly principal reduction in excess of the scheduled monthly principal payment. The SMM is simply the amount of prepaid principal in a given month expressed as a percentage of the principal balance at the beginning of the month. It is not commonly quoted; however, an annualized SMM, called the constant prepayment rate or CPR, is commonly quoted.
  
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