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Chargeoffs increased modestly for high loan-to-value home loan securities late last year, according to Standard & Poor's quarterly index.
At the same time, prepayment speeds remained strong in the high LTV sector, the rating agency said.
Overall, the delinquency rates on securitized high LTV loans was "mixed," according to S&P. While older deals, those issued prior to the first half of 1998, continue to have the most severe performance weaknesses, the delinquency rate has declined.
By contrast, delinquency rates have been rising on more recent deals, though they continue to perform better than the older deals at a similar point of seasoning.
On a weighted average basis, cumulative losses for the issue groups increased again by about 53 basis points during the fourth quarter of last year, according to S&P's ...
Source: HighBeam Research, High-LTV Losses Creep Up in '01.(Brief Article)