The prepayment story in conventionals has gotten more interesting — for the near term at least — following last week's announcement from both GSEs that they would buyout 120 day (or more) delinquent mortgage loans. 

Freddie Mac said it would essentially complete this operation in February and so this would be reflected in the factor report released in March, while Fannie Mae will begin in March (April factor report) and extend the purchases over "a few month period."

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