June remittance data, which reflect May activity, showed prepayments dropping further inspite of the lower mortgage rates and loss severities trending lower after rising the previous month, according to a report from Bank of America/ Merrill Lynch analysts.

Voluntary prepayments in May dipped slightly (~ 0.5% CPR) inspite of the record low mortgage rates in April, they said. Across the four indices, voluntary prepayment speeds aside from curtailments were around 2% to 2.5% CPR.

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