Bank of America

Prepayment Speeds Show Signs of Life in Streamlined Refis 

Prepayment speeds among mortgage-backed securities (MBS) indicate that, although some lenders facing an influx of refinance interest may lack the infrastructure to manage all the requests, streamlined refinance programs have picked up since their implementation. Bank of America-Merrill Lynch researchers noted late last week that aggregate 30-year fixed-rate MBS prepayment speeds declined 5% in June to 22.9% conditional prepayment rate (CPR), likely due to capacity constraints among lenders offering refinancings.