May Update: Cashouts Diverge, Cure Rates Dip in CES, Prepayments Respond to Rate Pressure

The latest dv01 research is now available for download.

Quick Insights

Non-QM: Cashouts and Prepayments Dominate Movement

• Cashout 60+ delinquency is nearly 3x higher than 2021/22 at same loan age

• Impairments rose 4 bps MoM, as CPA/P&L loans remain the weakest-performing doc type

• Prepayments fell 2.1 CPR, as higher rates flattened borrower activity

Closed-End Seconds: Cure Behavior Weakens Across Borrowers

• Cure and Made Payment rates declined, reversing their Q1 peaks

• Impairments still rising, but driven more by seasoning than credit degradation

• FL/GA/SC impairments finally fell, while other regions absorbed seasonal upticks