The May remittance reports, reflecting activity in April, released yesterday showed  modification rates slightly declining with the biggest drop coming from the 07-2 series, according to a Merrill Lynch report.

The monthly modification rate in the 07-2 series dropped to about 1.4%  from 2.5% of unpaid balance the previous month in April. Even though the dip was steep, this series had seen a much faster modification rate probably as a result of rate freezes around ARM resets compared with the other series, and the drop this month brings it back in-line with others.

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