U.S. prime jumbo delinquencies have been climbing and could be as high as 10% as early as next month, according to Fitch. In January, 60-plus day prime jumbo delinquencies rose to 9.6%, up from 9.2% in December. "The new year has brought no relief from declining jumbo loan performance," said Fitch managing director Vincent Barberio. Serious delinquencies have been climbing for 32 consecutive months and even those underwritten before 2005 are starting to show some potential strain, Fitch said. Although only 5% of prime jumbo senior residential mortgage-backed securities classes have been downgraded, about 40% have a negative rating outlook due to weakening collateral performance.
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