Powered by MOMENTUM MEDIA
subscribe to our newsletter
Non-banks see biggest improvement in arrears

Non-banks see biggest improvement in arrears

The number of delinquent housing loans underlying Australian prime residential mortgage-backed securities in March fell to 1.16 per cent from 1.23 per cent a month earlier, according to S&P Global Ratings.

In its latest report, S&P noted that non-bank originators recorded the largest improvement in mortgages more than 30 days in arrears, falling 18 basis points to 0.87 per cent from 1.05 per cent the previous month.

“We believe the improvement partly reflects an increase in outstanding loan balances,” S&P said.

Advertisement
Advertisement

Non-conforming mortgages in arrears declined in March to 6.17 per cent from 6.19 per cent in February against a backdrop of a decline in loans outstanding.

S&P found that mortgages more than 90 days in arrears, which have averaged around 0.50 per cent for the past decade, were 0.62 per cent in March.

“We believe this trend partly reflects a greater alignment in hardship reporting in recent years,” S&P aid.

“Non-bank originators have bucked the trend, with mortgages more than 90 days in arrears in March at 0.43 per cent, which is around half the average for the past decade of 0.88 per cent.”

[Related: On the Record: Mario Rehayem, Pepper Money]

Non-banks see biggest improvement in arrears
mortgagebusiness
  • 23
    Days
  • :
  • 07
    Hours
  • :
  • 54
    Minutes
  • :
  • 01
    Seconds

EARLY BIRD CLOSING SOON
Have you secured yours?

Latest News

Mitigating drivers of misconduct in the financial services industry will be a key area of focus for regulators in the Asia-Pacific region in...

Financial institutions in Asia Pacific will face myriad challenges and risks in 2019 and Australia is no exception, a new S&P report ha...

Regulatory reform proposed by the federal government would remove barriers to enhanced competition in the banking sector, COBA has said. ...

FROM THE WEB
podcast

LATEST PODCAST: The broking industry hits new heights

Is enough being done to ensure responsible lending?