TAO Solutions is pleased to announce the addition of two new prepayment models to both its loan and pool cash flow engines.   The two new methods supported are Linear Liquidation Model (LLM) and Constant Prepayment Rate (CPR).

LLM was implemented by the Investment Industry Association of Canada (IIAC) in November 2014 and is meant to take the place of the Canadian Liquidation Vector (CLV), which has been embedded within mortgageHUB since 2010, and popular throughout the industry long before that.  The more simplistic, but sometimes desired, CPR has been implemented into mortgageHUB to assist users with comparative models used within their respective institution or outside of Canada.

Aside from these two prepayment methodologies, loan cash flow models will continue to support multiple CLVs, whereas pool cash flow models will continue to support the CMHC standard of core LQR and PPR inputs.  The new prepayment models will be available in the mortgageHUB 2015-R1 release made available to clients in mid-March 2015.

For further information concerning this new functionality, or other aspects of the mortgageHUB 2015-R1 release, please contact your designated TAO Solutions client representative.