Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Arrears climb in Feb

Staff Reporter 1 minute read

By: Staff Reporter

Arrears on residential mortgage-backed securities (RMBS) loans surged in February as more borrowers felt the effect of the rising rate environment.

According to a recent report by Standard & Poor’s, the number of residential mortgage loans greater than 30 day arrears climbed to 1.48 per cent in February from 1.39 per cent in January.

"The increase in arrears is concentrated in the early stage arrears, where we expect to see a higher cure rate compared to other arrears categories," Standard & Poor’s credit analyst Vera Chaplin said.

“However, borrowers in more severe arrears may find it more challenging to restore their position in a rising interest rate environment. As interest rates increase further, we expect overall arrears to remain at this higher range until borrowers adjust to the higher mortgage payments and as the impact of Christmas spending diminishes.”

Sub-prime RMBS arrears declined slightly, by 33 basis points to 11.74 per cent in February 2010, from 12.08 per cent in January.

Arrears climb in Feb
default
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

default

 

more from the adviser
Darren Stratford Dianne Robinson Kristie Oldfield ta RedZed appoints BDMs, product manager

The lender for self-employed borrowers has appointed two BDMs in ...

digital money ta Wisr closes $5m raise

Wisr has wrapped a $5 million capital raise to accelerate its loa...

digital signatures Suncorp enables e-signatures on post-approval loan docs

The non-major bank has said that it will accept e-signatures on p...