February conventional prepayments were much faster than expected. Prepayment speeds were projected to increase about 20%, or 4 CPR, but instead were double that: FNMA speeds were 44% higher from January and FHLMC Golds were +52%.        Several factors contributed to the increase: the longer processing time which pushed closings into February that were expected in January (and which contributed to slightly slower than expected speeds in that month), and a pick up in servicer buyouts. 

Lower mortgage rates beginning in December all the way through to January were also a factor. 

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