{"id":170426,"date":"2010-01-12T11:57:00","date_gmt":"2010-01-12T16:57:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/jumbo-rmbs-defaults-triple-california-florida-and-new-york-lead-the-way-2010-1"},"modified":"2010-01-12T11:57:00","modified_gmt":"2010-01-12T16:57:00","slug":"jumbo-rmbs-defaults-triple-california-florida-and-new-york-lead-the-way","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/170426","title":{"rendered":"Jumbo RMBS Defaults Triple: California, Florida, And New York Lead the Way"},"content":{"rendered":"

Fitch has been updating its delinquency data on various classes of real estate assets. Today it’s jumbo residential mortgage-backed securities. Again, it isn’t pretty.<\/p>\n

—–<\/p>\n

  More  U.S. prime jumbo borrowers are falling and staying behind on their
  monthly  mortgage  payments,  with states such as California and Florida
  driving the elevated underperformance, according to Fitch Ratings in the
  latest  edition of its U.S. RMBS delinquency updates through Performance
  Metrics.<\/p>\n

  Overall,  prime  RMBS  60+  days delinquencies rose to 9.2% for December
  2009,  up almost three times compared to the same period last year (3.2%
  in  December  2008).  The 2006\/2007 vintages combined rose to 12.7% from
  4.3%.<\/p>\n

  The five states with the highest volume of prime jumbo loans outstanding
  (California,  New  York,  Florida,  Virginia,  and  New Jersey) comprise
  approximately  two-thirds of the loans in question. Prime jumbo RMBS 60+
  days  delinquencies  for  these  states  at  December  2009  compared to
  December  2008,  and their approximate share of the $388 billion market,
  are as follows:<\/p>\n

  –California: 10.8%, up from 3.5% (44% share)
  –New York: 5.8%, up from 1.8% (7% share)
  –Florida: 16%, up from 7.3% (6% share)
  –Virginia: 5.4%, up from 2.3% (5% share)
  –New Jersey: 7.1%, up from 2.3% (4% share)<\/p>\n

  Prime  jumbo  borrowers that were current on their mortgage the previous
  month  but  missed  a  payment the following month (roll rates) averaged
  about  1%  a  month  for the last 12 months, reaching a seasonal high of
  1.3%  in  December  2009. ‘While some of these borrowers caught up, many
  either  remained  a  payment  late  or  became  more  delinquent  in the
  succeeding months,’ said Managing Director Vincent Barberio.<\/p>\n

  Despite  some  improvement  in  home prices and a slowdown in employment
  loss,  roll rates have not improved primarily due to the number of prime
  jumbo  borrowers  who  owe  more  on  their mortgages than their home is
  worth.  ‘Over  one-third  of  prime  jumbo borrowers that are current on
  their   mortgages  also  are  ‘underwater’  on  their  mortgages,’  said
  Barberio.<\/p>\n

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