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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.



ARs in the dark about Citri future

Appointed representatives of Citri have complained of being left out in the cold by the firm regarding its future. Mortgage Strategy recently reported that the company’s future was in doubt after a deal to transfer its 138 advisers to Openwork fell through. At the time, Openwork said it was in discussions with Citri and looking […]


It is outrageous that ARs for Citri have been left in the dark

I want express my deep concern for all the advisers of Citri. For many weeks now we have been in turmoil over the outcome of Citri’s troubles and we are still none the wiser with regards to its demise. We understand the directors of Citri have announced to staff that it is in receivership but […]

This month’s decision: Hold

Mortgage Strategy’s shadow Monetary Policy Committee keeps the base rate at 0.5% as concerns about the economy, slow growth, rising inflation and an uncertain housing market maintain their grip

202 Firms come up to the mark for CQS accreditation

The Law Society has accredited 202 firms to its Conveyancing Quality Scheme. Launched in January, the CQS requires law practices to undergo strict assessments, compulsory training, self-reporting, random audits and annual reviews. Desmond Hudson, chief executive of the Law Society, says: “Accredited firms have reported that new clients are checking whether they are CQS accredited […]

Europe: banking on a recovery

Neptune video: Europe — banking on a recovery

Arguing that the eurozone crisis is over, watch Rob Burnett, head of European equities at Neptune, discuss the sectors that he’s investing in to harness the recovery. 

In the video, Burnett addresses the following: 

• The primary drivers of the eurozone’s economic recovery
• The turnaround in individual countries’ current accounts
• Sectors best positioned to harness the recovery, without offering undue exposure to risk


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  • Subtastic 8th June 2011 at 4:14 pm

    I was only talking about this the other day Luke.

    Talk about a country sitting on a time bomb………we’re sitting on a Trident Thermonuclear Device!

    If interest rates even twitch I’d say 90% of those with Sub-prime lenders will wobble and fall.

    Couple that with the fact that sub primes are also reticent to repossess in case the regulator snips their bits off.

    Never mind cases that are 2 and 3 plus………what you need to be worried about are those that are 10 and 20+ payments down and still bobbing along.

    Thats the true next time bomb.

    you might as well bankrupt the lot of them and write off the losses…….words like catastrophic will be wholly inadequate.

    anonymous I get your sentiment and you are right……..problem is some of the good guys are being taken down with them for just being in the wrong industry at the wrong time.

    Sad times.

  • Daniel 8th June 2011 at 10:32 am

    Excellent news. People will, hopefully, stop believing it’s their divine right to own a home despite showing zero financial responsibility.

  • Luke Atkinson 7th June 2011 at 1:26 pm

    This is the worrying factor of the housing market today. Ancient Wisdom is right, wait to see what happens when interest rates rise.

    Those who are with sub prime lenders who are no longer operating in the market, nor offering new rates to those on SVRs, will be trapped.

    How many lenders in today’s market will accept a remortgage applicant with 3 or more months arrears?

    Repo’s will rise, house prices will fall.

  • Trevor Cherry 6th June 2011 at 4:11 pm

    This was primarily sub prime mortgaes Gobsmacked, so whilst it wa always going to be significantly higher than standard residential mortgages, these figures are very very grim. Particularly whenyou consider that usually these loans arent even considered to be in arrears at all until they are 3 months plus down. Imagine if you will what the figures would be if those of 2 months + were reported….

  • Ancient a mortgage broker in N3 6th June 2011 at 2:17 pm

    …guess what folks, when rates rise, more lenders will report 90days arrears on mortgages increasing.

  • Gobsmacked 3rd June 2011 at 5:55 pm

    I am a little new to these things, but I thought a dodgy arrears rate was something around 5%. Are these figures astounding or am I overreacting? Someone help me here. If this is as bad is it looks what was going on?