The performance of securitized jumbo mortgages has been steadily improving since reaching the worst level three years ago.
Delinquency of at least 60 days on jumbo loans included in non-agency residential mortgage-backed securities is 9.3 percent.
Securitized jumbo mortgage performance has improved compared to one year ago, when the 60-day rate stood at
9.9 percent.
Delinquency has declined substantially compared to the 12.5 percent peak reached in 2012.
The findings were announced Tuesday by Fitch Ratings based on
8,294 classes it rates from 826 prime jumbo RMBS transactions collateralized with loans originated prior to 2009.
Fitch noted that improving loan performance has
been driven by steady home-price growth, declining unemployment and positive selection among remaining borrowers.
A review by the ratings agency indicated that 91 percent of the classes were affirmed, five percent were downgraded and two percent were upgraded. Another two percent were placed on “Rating Watch Negative.”
“The rating actions reflect the generally stable to positive collateral performance of the sector,” the report stated.
The report indicated that nearly all of the downgrades
of investment-grade classes were just one notch and driven by collateral pools with low remaining loan counts.
