RMBS home loan arrears edge slightly higher

RMBS home loan arrears edge slightly higher
RMBS home loan arrears edge slightly higher

The number of home loans in arrears rose for the seventh consecutive month in May, according to the Standard & Poor’s Performance Index, commonly referred to as SPIN.

Australian Broker noted it shows that 1.21 percent of “prime” residential mortgage-backed securities (RMBS) were in arrears in May, up from 1.14 percent the previous month and 1.07 percent a year earlier.

The index measures the weighted-average arrears more than 30 days past due on loans in RMBS transactions.

It also showed that arrears were higher amongst the banks.

The major banks’ 90 day-plus arrears rose four basis points to 0.48 percent, while non-banks fell a point to 0.17 percent. 

S&P noted that the non-conforming remains low by historical standards and well below the 2009 peak.

Tags: 
Home Loans Arrears

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