Personal banking

Personal banking

Referring to the business when banks carry out transactions with customers directly, rather than with other banking institutions or with large corporations.

Industry: Banking

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Personal banking

(1) noun — A term used to describe loan or bond principal payments that are made in excess of the scheduled principal payments and before maturity. Any amount paid to reduce the principal before the ...

prepayment penalty

Banking; Personal banking

A fee that must be paid to the lender if the borrower prepays a loan within a defined time period. Many consumer loans, especially residential mortgage loans, do not have prepayment penalties.

prepayment rate

Banking; Personal banking

A representation that reflects the rate at which prepayments are received or forecasted to be received for a mortgage loan, a pool of mortgage loans, or an MBS. May be expressed as a PSA or CPR ...

prepayment risk

Banking; Personal banking

The risk that prepayments will speed or slow and therefore change the yield and/or life of the security.

pre-refunding (pre-re)

Banking; Personal banking

The sale of bonds used to obtain funds that are then placed in escrow to back bonds previously issued. The first issue typically comprises bonds that were originally issued at high, fixed coupon ...

presentment

Banking; Personal banking

A process by which a check is presented for payment at the drawee’s bank.

price

Banking; Personal banking

The amount paid for a security. The price of a security is usually expressed as a percentage of its par value. For mortgage-related securities, the price is usually expressed as a percentage of the ...