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Alt-A Deteriorates, Jumbos Are Mixed.

Mortgage Servicing News

| August 01, 2007 | COPYRIGHT 2007 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

NEW YORK -- Analysts at Standard & Poor's say that the performance of alt-A quality mortgages originated in 2006 continues to deteriorate.

At the same time, they said that the performance of jumbo loans has been mixed, with delinquencies for the 2006 vintage rising but losses remaining negligible at the moment.

S&P said that 2.5 times more alt-A loans from the 2006 vintage are at least 90 days past than was the case for the 2005 vintage at the same point of seasoning.

Moreover, the serious delinquency rate for the 2006 vintage is four times as high as the 2004 vintage was at the same point in time, the rating agency said.

After 14 months of seasoning, 4.21% of alt-A loans originated last year were at least 90 days past due, ...

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