Policy changes including the potential extension of the government's Home Affordable Refinance Program (HARP) in 2011 to all GSE loans can result in faster prepayment speeds on agency mortgages, said Barclays Capital in its 2011 outlook report.

According to Barclays analysts, an extension of the HARP program to every GSE loan will instantly increase the prepayment speeds of 2009/2010 production by 30% to 100%.

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