May prepayments were much slower than expected. Previously, consensus on the Street was that there would be declines of just around 1% or so from April.

However, speeds declined about 17% on average for conventionals and 8% for GNMAs.  The 2007 and 2006 vintages recorded the largest percentage declines, as expected, at -22% and -26%, respectively, in FNMAs, versus expectations of 2% to 3% lower.

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