Seasoned jumbos with 7.0% to 7.5% WAC will not provide prepayment protection relative to more recent cohorts - 2001 to 2002 cohorts - said a recent report by Lehman Brothers on non-agency prepayments.

Lehman stated that 1998 to 1999 cohorts are expected to prepay more aggressively than other vintages. This is a result of the recent increase in agency loan size limits, attractive 30-year hybrid refinancing opportunities, as well as minimal accumulated burnout.

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