Loss severities dropped across all the indices by 1.0, 1.7, 4.9, and 3.2 points to 82.4%, 83.4%, 87.5%, and 90.5% for the 06-1 through 07-2 indices, respectively, as reported by Bank of America Merrill Lynch analysts.

Most transactions showed dips in losses resulting from loan modifications due to forbearance recognition, principal forgiveness, and/or the recovery of servicer advances.

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