Welcome to Level1Analytics

PREPAY SPEEDS REVISITED

Doug Duncan, chief economist for Fannie Mae, confirmed what I have been saying about prepay speeds. He stated that 70% of mortgagor applicants will not be able to “make the cut” given the industry’s tighter underwriting standards. I think this gives further credence to my January 6th blog (“12/31 Prepay Speeds are Overstated”) stating that the MSR industry should be using 11/30 prepay speeds for their year-end valuations. This should be a much more accurate reflection of what is going to happen.

To see the entire article, go to the WSJ online :

WSJ 1/15/2008

Leave a Reply

  • (will not be published)

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>