Rising interest rates have slowed a recent run of unexpectedly high prepayments of government-insured mortgages, making servicing rights for loans held in Ginnie Mae securities more attractive to investors.

Many Ginnie Mae MSR bidders have been sitting on the sidelines amid concerns about faster-than-expected prepayments fueled by the Federal Housing Administration's streamline refinance and the Department of Veterans Affairs' interest rate reduction refinancing loan programs.

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