Three of Money Partners’ residential mortgage-backed securities tranches have over 34% of their book in arrears of 90 days or more.
As of February 2011, Money Partners Securities 2 cumulative losses as a percentage of the original portfolio balance amounted to 4.1%, up from 1.5% in May 2008.
Loans delinquent by more than 90 days, including outstanding repossessions as a percentage of the current non-conforming portfolio balance, amount to 34.3% an increase from 17.9% in May 2008.
Around 12.7% of the MPS2 current portfolio balance is represented by loans in arrears by more than 360 days.
In June last year Moody’s downgraded MPS3 and MPS4 and at the time loans in arrears of more than 90 days totalled around 31.9% and 34.3% respectively.
The Goldman Sachs-owned lender suspended new lending in February 2009.
Moody’s says it has downgraded the tranches because of the macroeconomic environment, elevated unemployment, weak house prices, anticipated tightening of fiscal policy and an expected increase in interest rates.
The ratings agency has also downgraded nine classes of notes issued by Kensington Mortgage Securities plc Series 2007-1.
Loans delinquent by more than 90 days, including outstanding repossessions as a percentage of the current portfolio balance, amount to 29% an increase from 13.1% as of September 2008.
In March Mortgage Strategy reported that overall, 23% of Kensington Mortgages’ portfolio was 180 days or more in arrears in 2010.