subscribe to our newsletter
RMBS arrears rise further

RMBS arrears rise further

The proportion of Australian housing loans in arrears has increased for prime and non-conforming residential mortgage-backed securities (RMBS).

According to Standard & Poor’s (S&P) Performance Index (SPIN), arrears levels for prime RMBS rose to 0.98 per cent in December 2015 from 0.92 per cent in November, while non-conforming RMBS levels increased to 4.63 per cent from 4.22 per cent a month earlier.

Non-bank lenders recorded the lowest arrears level of all originator types at 0.70 per cent, while regional banks had the highest arrears level at 1.74 per cent.

The major banks reported in December that arrears of more than 30 days increased by 27 per cent year-on-year, despite a rise in outstanding balances of over 50 per cent during the period.

Meanwhile, non-bank lenders reported a 23 per cent decline in arrears, despite a 3 per cent contradiction in outstanding balances.

S&P credit analyst Narelle Coneybeare said while most categories saw increases in loan arrears during December, prime and non-conforming arrears remained lower than 12 months earlier.

“We expect further increases in arrears in the coming quarter, typical of the post-Christmas months,” she said.

[Related: Investor curbs positive for RMBS, says Moody's]

RMBS arrears rise further
mortgagebusiness

Latest News

The central bank has warned that an increase in the non-bank sector’s market share could pose a threat to financial stability. ...

The head of Australia’s largest bank has been forced to confront the devastating impact the group’s misconduct has had on the wellbeing ...

The Australian Prudential Regulation Authority has responded to the Hayne commission interim report by saying that a good banking system is ...

FROM THE WEB

podcast

LATEST PODCAST: Emotional intelligence and its role in managerial structure

Is enough being done to ensure responsible lending?