U.K. Nonconforming MBS Delinquencies Continuing to Rise

Delinquencies and losses in the United Kingdom's securitized nonconforming mortgage market are continuing to increase, according to Moody's Investors Service's latest available index data for the sector. Delinquencies and losses continue to rise at a rapid pace, as unemployment continues to rise, said Nitesh Shah, a Moody's economist and co-author of a second quarter report on the index. With only a few exceptions, deterioration can be observed for all U.K. vintages and transaction series, according Georgij Ludmirskij, a Moody's senior associate and also a co-author of the report. According to the report, 54 U.K. nonconforming transactions have more than 20% of 90-plus days delinquent loans in their portfolios, while 22 transactions posted 90-plus days delinquencies higher than 30%. In the second quarter, Moody's placed on review for possible downgrade 133 classes of notes in 13 U.K. nonconforming transactions. Eighty-eight transactions worth £27.3 billion ($44.4 billion) are currently outstanding in this market, according to Moody's.