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.