Data for the third quarter of 2009 shows that loans three months or more in arrears make up 19 per cent of the loan balance which is the same percentage as in the second quarter of this year. This follows seven quarters of consecutive increases.
This is matched by falling levels of loans currently in repossession, which is caused by fewer new repossessions and continued strong activity by servicers to dispose of repossessed properties.
Fitch RMBS surveillance team associate director Peter Dossett says: “Stabilising arrears levels are a positive sign for non-conforming RMBS transactions. However, they remain at historically high levels and therefore continue to represent a significant risk.”