July prepayment speeds on Fannie Mae and Freddie Mac cusp coupons spiked, while high coupon speeds were "tame" and Ginnie Mae speeds surged, according to Credit Suisse.
Lower rates drove 30-year conventional speeds up by 10% from the previous month. Fannie speeds in this category were slightly slower than Freddie speeds.
A need for special approval from Ginnie for buyouts of delinquent loans from Taylor, Bean & Whitaker caused a spike in higher coupon Ginnie Maes. There was a "meaningful upside surprise" in terms of voluntary prepayments as well, the Credit Suisse researchers said. Roughly 3% of CPR gains in 5% Ginnie Maes from 2008 and 2009 came from buyouts of delinquent TBW loans.
Thirty-year prepayment speeds on 2008 vintage Fannie Mae mortgage-backed securities with 5% coupons also surprised Credit Suisse researchers "on the high side" in the latest month.
