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ISCOVER
Staff Reporter
The amount of loans in arrears grew slightly in July.
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According to a recent report by Standard & Poor’s Ratings Services, loans underlying Australian prime RMBS that are greater-than-30 days in arrears rose to 1.46 per cent in July 2010, from 1.43 per cent in June 2010.
"Over the last six months, arrears in loans underlying Australian prime RMBS have remained in the range of 1.4 per cent and 1.5 per cent,” Standard & Poor’s credit analyst Vera Chaplin said.
“The stabilization of arrears levels seems to indicate that most borrowers have adjusted to the higher mortgage rates, following an overall 1.5 per cent increase in cash rates between April 2009 and May 2010.”
Subprime RMBS arrears also increased slightly, by one basis point to 12.08 per cent in July 2010, compared to a month earlier.
