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TEXT-Fitch new U.S. mortgage market index: delinquencies continue slow descent
January 22, 2013 / 4:52 PM / 5 years ago

TEXT-Fitch new U.S. mortgage market index: delinquencies continue slow descent

Link to Fitch Ratings' Report: Residential Mortgage Market Index - U.S.A.Jan 22 - Delinquencies for U.S. RMBS have and will continue their slow
decline this year, according to Fitch Ratings in its new mortgage market index.

Fitch's 60+ day delinquency index improved to 28.6% by the end of fourth-quarter
2012 (4Q'12), a slow decline compared to 30.6% at end-4Q'11. Driving the
improved delinquency rate is positive trends for both Alt A and subprime RMBS,
along with post-2005 prime deals.

'Perhaps the most notable factor driving improved delinquency performance has
been positive selection among remaining borrowers, along with loan modifications
and positive home price trends,' said Grant Bailey, Managing Director at Fitch.

Home prices increased roughly 5% nationally and over 7% in California from the
start of 2012 to the beginning of 4Q'12. Helping the price increase was low
mortgage rates and a lower percentage of distressed property liquidations. That
said, Fitch still sees risk in certain regions. 'The Northeast in particular has
not yet seen the significant declines seen in the rest of the country and as
such is vulnerable to further home price declines,' said Bailey.

Fitch's index is published quarterly and highlights performance trends in legacy
and new issue RMBS, house price conditions and mortgage market developments.
Fitch's index measures the percentage of loans that are seriously delinquent
among U.S. private label, securitized mortgage loans.

'The Mortgage Market Index -U.S.A.' is the latest in a series of quarterly
structured finance index reports that Fitch is rolling out globally. It is
available at or by clicking on the above link.

Additional information is available at

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