4.3.4.3.2 Creating Prepayment Model with Rate Calculation as External Model

To create a Prepayment Model Rule, follow these steps:

1. Navigate to the Prepayment Model Summary Page.
2. Click Add. The Prepayment Model Details Page is displayed.

   Figure 4-67 Prepayment Model

   
   

   

   
   
3. Enter the following details:
   • Name: Enter the name and a brief description for the Prepayment Model. The name you assign to the Prepayment Model must be unique. The name can hold a maximum of 30 characters.
   • Rate Calculation: Select the Prepayment Model Rate Calculation Method as External Model. When you select External Model, Define Equation button will get activated to use External Prepayment Model. This is useful, when you want to do Prepayment Modeling outside PBSM and use the model equation to calculate Prepayment Rates.
   • Folder: Select the Folder
   • Description: Enter the description of Prepayment Model Rule.
   • Select Access Type.
4. Follow below steps:

   Defining the Structure of the Prepayment Model Using Dimensions section

   Defining Equation using Define Equation section

   Modifying the Table Structure Using Bucket Definition section

   Prepayment Rates Using Matrix Definition