More Bad News For Prime RMBS Delinquencies

Posted by Orb Staff on July 13, 2010 No Comments
Categories : Residential Mortgage

s delinquencies stemming from prime residential mortgage-backed securities (RMBS) rose in June for the 37th consecutive month, according to the latest performance metrics results from Fitch Ratings. Prime jumbo RMBS delinquencies for 60 days and higher rose to 10.4% for June, up from 10.3% for May and 6.4% a year ago, according to Fitch. Since the beginning of the year, delinquencies are up 1.2%. June roll rates for Prime RMBS remained above 1% after dipping below that level in April but remained below their highest-ever level (1.4%) recorded in March. ‘The persistently high roll rates indicate that the delinquency declines are more a reflection of increased property liquidation and ongoing loan modification activity than of widespread improvement in mortgage payment performance,’ says Vincent Barberio, managing director, who adds that ‘prime RMBS has yet to show any signs of a favorable turnaround.’ The five states with the highest volume of prime RMBS loans outstanding (California, New York, Florida, Virginia, and New Jersey) combined represent approximately two-thirds of the total sector, according to Fitch. Conversely, Alt-A RMBS delinquencies declined for the third successive month while subprime late-pays fell for the fourth straight month. The full report is available [link=http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=472806]online[/link]. SOURCE: Fitch Ratings

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