Thirty-year conventional prepayment speeds in February dropped by about 20%, according to Wall Street research reports.
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A report from Credit Suisse indicated speeds were largely as expected with a few exceptions, including slightly slower-than-expected speeds in 4.5s and slightly less of a slowdown than expected in the speeds of seasoned 5s.
A Barclays Capital report said while 2008 5.5-6s also failed to slow as much as some thought they would, generally the latest report reduced prepayment uncertainties to a significant degree.
Both Barclays' and Credit Suisse's reports indicated the trend toward differences in the speeds of loans handled by different servicers continued in the latest month.
