The May prepayment report was all about HARP, as was expected; however, speeds on seasoned 5.0%s on through 6.5% were faster than anticipated. Meanwhile, lower coupons were mostly slower than projected.

For example, FNCL 5.0s through 6.5s were estimated to increase between 5% and 9% on average but rose 9-14%, while 4.0s and 4.5s were predicted at +6-7% but were up just 1%.

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