Fitch finds many
In a review of 626 classes of 66 U.S. closed-end second-lien and home equity line of credit securitizations, “roughly 95% of classes were either affirmed at their previous rating or upgraded,” the company said in a recent report.
“The rating upgrades reflect the improving performance of the seasoned collateral, driven by positive selection on the remaining borrowers and positive home price trends,” according to Fitch. “Over the past year, home prices have increased more than 5% nationally and over 10% in many areas of California.
“Serious delinquency as a percentage of outstanding loans has declined to 10.6% from 12.5% one year ago and a peak of 21% in 2009.”
