Powered by MOMENTUM MEDIA
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.

Advertisement
Advertisement

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

A global investment bank has announced its plans to expand its commercial offering to multinational Australian businesses after identifying ...

Moody’s has backed the Reserve Bank’s monetary policy adjustment, adding that it expects the monetary policy boost to help revive the f...

Demand for home rebuilds in Sydney has remained stagnant over the last 12 months, despite the other challenges that have plagued the housing...

FROM THE WEB
podcast

LATEST PODCAST: Movers and shakers

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.