Mortgage Daily Logo

Prime RMBS Performance Worse, Subprime Better

Mortgage News

Mortgage Daily

                                                 April 7, 2010

As late payments increased on securitized prime mortgages, subprime performance was better. But the improvement might only be temporary.

Serious prime loan delinquency on residential mortgage-backed securities surged past 10 percent in March, Fitch Ratings reported today. It was the 34th consecutive month that delinquency deteriorated.

Fitch said prime RMBS delinquency has nearly tripled from the start of the surge in the second-quarter 2007 and 2009. So far this year, the rate of prime late payments has risen 90 basis points.

Delinquency of at least 60 days on prime jumbo RMBS rose to 10.1 percent in March from 9.9 percent the prior month. The rate on securitized jumbo loans was just 4.8 percent in February 2009.

In California, where 44 percent of jumbo RMBS loans are secured, the jumbo rate rose 20 basis points to 11.8 percent. New York jumbo delinquency, however, was just 6.7 percent though up 40 BPS. Florida, with a 6 percent jumbo RMBS market share, saw the delinquency rate on those loans rise to 17.5 percent from 17.0 percent.

One bright spot, however, was delinquency on subprime RMBS — which edged down for the first time in nearly four years to 46.3 percent from 46.9 percent in February. Still, subprime performance is worse than in February 2009, when delinquency stood at 39.8 percent.

‘The improvement in subprime delinquencies may be nothing more than a seasonal anomaly of tax refunds being utilized to help borrowers catch up on late mortgage payments,” Fitch Managing Director Vincent Barberio said in the news release. “Nonetheless, March roll rates fell significantly from last month and are now at their lowest level in over two years.”

Fitch also noted that an increase in loan modification activity might have contributed to improved subprime performance.

Subprime delinquency of at least 60 days on all U.S. mortgages — including securitized and portfolio loans — was 35.14 percent in the Mortgage Bankers Association’s fourth-quarter delinquency survey. The disparity highlights the better performance on portfolio loans than on loans serviced for RMBS investors.

Related Posts

Federal Housing Administration$1,224.5 billionDec. 31

Third-Quarter 2012 Mortgage Litigation Index

Lawsuits involving excessive fees, servicing fees and loan fees beyond state maximums. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Fannie Mae and Freddie Mac Orangeburg County, Richland County, South...

Federal Housing Administration$1,224.5 billionDec. 31

Net Branch Lawsuits

Litigation involving net branch operations. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story PHH Mortgage Corp. Mathews Supreme Court of Virginia na Court held that the term "branch office" includes not only...

Federal Housing Administration$1,224.5 billionDec. 31

Whistleblower Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure.   Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Bank of...

Federal Housing Administration$1,224.5 billionDec. 31

Mortgage Servicing Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story BAC Home Loan...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming paperwork has been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and furniture need to...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand-new mortgage loan can be a difficult task, especially for first-time homeowners.   After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first...

Newsletter

Don’t worry, we don’t spam