Money Partners RMBS 34% in arrears

Moody’s has downgraded three tranches of non-confirming residential mortgage-backed securities issued by Money Partners which are currently 34.3% 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 amount 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 portfolio balance, amount to 34.3% – an increase from 17.9% in May 2008.

Approximately 12.7% of the MPS 2 current portfolio balance is represented by loans in arrears by more than 360 days.

The Goldman Sachs-owned lender suspended new lending in February 2009.

Moody’s says since May 2008, constant prepayment rates have decreased from  19.9% to 7.2% while weighted average loss severity has increased from 24.9% to 34.6%.

Moody’s has increased its lifetime expected loss assumption for the MPS 2 portfolio from 4.4% to 7.2% of the original portfolio balance.

The ratings agency has also downgraded nine classes of notes issued by Kensington Mortgage Securities plc Series 2007-1.

As of March 2011, KMS 2007-1 cumulative losses as a percentage of the original portfolio balance amount to 3.8%, up from 0.8% as of September 2008.

Loans  delinquent by more than 90 days, including outstanding repossessions as  a percentage of the current portfolio balance, amount to 29.0% – 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.