• Is the concept which assumes that newly issued mortgages tend to prepay slower than mortgages which are older or seasoned. This aging refers to the underlying collateral and not the securities created upon that collateral.

 Embedded terms in definition
 Referenced Terms
 Pre tax profit on sales: Also known as Profit Margin; Profitability. Calculated by dividing the Pre-tax Income by Net Sales: (Net Income / (1 - Tax Rate)) /Revenues.
This measures the effectiveness of management in controlling expenses and is a useful measure of overall operational efficiency when compared with prior periods or other companies in the same business. This return on sales varies widely between industries (e.g. 2% return for supermarkets is reasonable, but manufacturing industries should return 4-5%). A declining profit margin can be caused by declining sales, declining efficiency, Aging plant and equipment, or inappropriate management decisions. If quarterly pre-tax income is not available, you can estimate the tax rate from the yearly tax rate.

 Seasoned: Is a mortgage industry term that describes the Aging process underlying collateral. It refers to mortgages, which are at least 30 months old and are expected to have relatively stable prepayment rates.

 Related Terms
 Aging of accounts receivable
Aging schedule

<< Agi Aging of accounts receivable >>

Beware of fraud originating in phone messages and faxes: FDIC Consumer News has warned before about crooks who call or e-mail consumers and pretend to be legitimate companies or government agencies wanting people to "verify" or "resubmit" (divulge) confidential information such as bank account or credit card numbers as well as Social Security numbers, passwords and personal identification numbers. Here are variations to know about. More...

Beware of small expenses; a small leak will sink a great ship. - Benjamin Franklin (1706-1790)


Copyright 2009-2019 GVC. All rights reserved.