We see a similar trend for sub-prime ARMs. Chart 2 shows that sub-prime 2/28 ARM speeds stayed flat through the second half of 2006 (other than the 2004 vintage which reset in 2006) and started declining from about July 2007. However, the interesting thing here is that unlike prime hybrids, the sub-prime ARM prepayment speeds are dependent on vintage. Older vintages have been prepaying faster than newer vintages. The chart also shows the peak reset speeds for the 2003 and 2004 vintages, which occurred in 2005 and 2006, respectively.

Chart 2

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