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Home » Store » News » Analysts Try to Sort Out Why Ginnie Mae Prepayment Speeds Are Running Faster Than Conventional Pools

Analysts Try to Sort Out Why Ginnie Mae Prepayment Speeds Are Running Faster Than Conventional Pools

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Wall Street analysts are trying to figure out why Ginnie Mae securities have been prepaying faster than comparable Fannie Mae and Freddie Mac deals, but so far there is not a lot of consensus on what’s behind the shift. Ginnie Mae MBS prepayment speeds in July ran 4 percent to 5 percent faster than comparable Fannie and Freddie securities, a trend that began back in the fourth quarter of 2003 and is at odds with the historical pattern that Ginnie’s prepayments lag behind conventional MBS.
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