While the May Freddie Mac report presented no big surprises, with Gold aggregates performing pretty much as expected - accelerating a tepid two to three CPR across the board, according to a UBS Warburg report - sources predict Fannie Mae speeds are going to be faster in this week's prepayment report.

Since the Freddie Mac report covers prepayments on a mid-monthly basis while the Fannie Mae and Ginnie Mae reports - which are expected to come out this week - cover prepayments by calendar months, the 2000 Fannie production is reacting to rates 12 basis points lower than they were a month ago, thus causing Fannie Mae speeds to be much faster than comparable Golds.

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