The aggregate nonagency mortgage loan roll rates from current to delinquent have significantly improved, dropping to their lowest levels since early 2007, according to Fitch Ratings.
Fitch's Delinquency Roll Rate index shows the rate of
Analysts credit home price increases, steady job growth “and positive selection among borrowers remaining in the mortgage pools.”
Fitch director Sean Nelson noted, however, that rates of new mortgage delinquencies are seasonal and have a tendency to drop to their lowest level in the second quarter mainly because borrowers receive tax refunds they typically use to pay their mortgage debt.
But despite that seasonal effect, he added, second-quarter roll rates have improved year-over-year since 2010 indicating a
Nonetheless, the index, which measures the percentage of previously performing loans that become delinquent among U.S. private-label, securitized mortgage loans, Fitch said, also indicates prime mortgage
