MS's Jay Bacow said on MBS prepayment........>

US MBS: MS's Jay Bacow said on MBS prepayment speeds that "we refresh the

turnover picture and find that, as expected, compared to the last discount

period turnover speeds have been faster for conventional (~1 CPR faster), but

much faster than expected for Ginnie (~4-5 CPR faster). We attribute this to

higher cash out activity (observable in the data), higher FHA-to-conventional

refinance activity (evident from product pricing), and a marginally higher

mobility rate (seen in the Census data)."

- He adds that "separately, Ginnie issued APM 17-02, granting issuers

accelerated buyout authority of loans against homes in hurricane disaster areas,

which may adversely impact speeds for some Ginnie pools."