Fitch: U.S. Prime Jumbo RMBS Delinquencies Nearly Triple to 9%

More prime jumbo borrowers are falling behind on their payments and not catching up - with states such as California and Florida driving the trend, according to a new research note from Fitch Ratings. Fitch says MBS backed by loans taken out by these borrowers had a delinquency rate of 9.2% (60-plus days late) in December, almost triple the rate 12 months earlier. The five states with the highest volume of prime jumbo loans outstanding - California, New York, Florida, Virginia, and New Jersey - comprise two-thirds of the loans in question. Prime jumbo borrowers who were current on their payments in November 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 Fitch managing director Vincent Barberio.