Changes made late last year to the Home Affordable Refinance Program, or HARP 2.0, are finally starting to affect prepayment speeds for both conventional MBS and GNMAs, and more recent changes in the Federal Housing Administration's (FHA) mortgage insurance premium (MIP) are also creating uncertainty about the prepayment outlook.

While lenders began accepting applications for HARP 2.0 on Dec. 1, there was no impact in January's prepayment report. That changed in the February prepayment report, which showed clear signs of HARP 2.0 activity, with speeds on the credit-impaired coupons and vintages increasing more than expected.

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