Arrears on mortgage-basked securities down

Standard & Poor's Ratings Services says that the level of loans underlying New Zealand residential mortgage-backed securities (RMBS) that are in arrears by more than 30 days maintained its long-term downward trend in August, recording 1.89%.

Tuesday, December 11th 2007, 9:27AM

It was down from 2.08% in July, as measured by the New Zealand Prime Standard & Poor's Mortgage Performance Index (SPIN).

Standard & Poor's rating analyst Erin Kitson said that arrears on full doc loans eased to 1.46% in August from 1.64% in July. Low doc loan arrears levels dropped to 3.93% in August from 4.24% in July.

"The level of arrears on residential mortgage loans underlying New Zealand subprime RMBS is at its lowest level so far this year," Kitson said. "It eased to 13.61% in August."

Residential mortgage loans funded through RMBS represent close to $1 billion of the New Zealand residential mortgage market.

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Arrears on mortgage-basked securities down

Standard & Poor's Ratings Services says that the level of loans underlying New Zealand residential mortgage-backed securities (RMBS) that are in arrears by more than 30 days maintained its long-term downward trend in August, recording 1.89%.

Tuesday, December 11th 2007, 9:27AM

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