Contrary to previous experience, Freddie Mac MBS are prepaying slower than their Fannie Mae counterparts, which is a phenomenon attributed to differences in Freddie's seller distribution compared to the composition last year.

Over the majority of 2002 and 2003, Gold speeds generally outpaced FNMA securities only to decelerate after the August 2003 rise in prepays. Data shows that this year, the vast majority of Gold cohorts have been prepaying consistently slower compared to same-vintage, same-WAC FNMAs. The only major exceptions cited occurred in the May and June prepayment reports, reflecting a spike in speeds.

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