It has been three months since the new GNMA II program took effect and analysts are starting to look at relative value comparisons to GNMA Is. Both JPMorgan Securities and UBS released recent studies on the subject.

Under the GNMA II program, originators must now pool mortgages with gross WACs 25 to 75 basis points more than the coupon rate. The old rules required that gross WACs be 50 to 150 basis points above the net coupon rate.

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