This file contains the curtailment (partial prepayment) rate assumed in the Secondary Market Guaranty (SMG) model for FY05. For each month from loan disbursement (not SMG pool creation), it lists the percentage of outstanding loan balance that we expect to curtail. The curtailments upon which this curve is based are only those that are at least 20% of outstanding loan balance. The curve starts out relatively steady and gets more volatile as loan age increases. Likely this stems from having less data in the out years.
