Non-conforming RMBS buoyed by low rate climate
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Fitch Ratings says the performance of UK non-conforming residential mortgage-backed securities is con-tinuing to improve with loans in arrears for three months falling from 19.7% in Q1 2010 to 18.6% in Q2.
Outstanding repossessions also fell from 1.4% in Q2 to 1% in Q1.
The ratings agency says that the improvement is down to the low interest rate environment, which is making monthly payments more affordable for borrowers who were having difficulties.
This has resulted in lower repos-session activity and as a result lower realised losses within indivi-dual RMBS.
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