Just about every week so far in 2012 has had a headline or tape bomb to deal with and this week was no exception. In fact, there were two that directly hit the MBS sector, which are the Federal Housing Administration (FHA) mortgage insurance premium announcement and February prepayments.

On Tuesday morning, the White House announced that beginning June 11, FHA will lower its up-front premium to 0.1% and cut the annual fee to 55 basis points for streamlined refinancings for loans originated before June 1, 2009.

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