Prepayment penalties effectively slow prepayment speeds across all types and issuers of subprime mortgages. But the effectiveness of penalties tends to be more pronounced at the A-minus end of the subprime spectrum and more pronounced in adjustable-rate mortgages than in fixed-rate products, according to an analysis by Mortgage Information Corp.

MIC's database contains more than 1.4 million subprime loans from a variety of issuers and is the largest compilation of subprime-loan data, the company said. It includes both subprime loans that were securitized and those held in portfolio, said Martin Wahl, an MIC director.

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