Credit Suisse expects mortgage repurchase demands to remain strong throughout the remainder of the year, but believes the worst of it might be over when 2010 ends.

"The bulk of repurchases are from the 2006 and 2007 vintages which represent the highest loss content vintages and the GSEs should be through these vintages by the end of the year," writes Credit Suisse analyst Moshe Orenbuch in a new research note. "We would expect reps/warranty expense to moderate in 2011 given that the quality of industry originations strengthened during 2008."

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