The Foreclosure Report

'More Losses Will Crystallise': UK

Fitch Ratings had this to report today. "Fitch Ratings says in a just-published report that UK non-conforming residential mortgage-backed securities show slight improvement in the second quarter of 2006. However, the improvement in arrears levels needs to considered in the context of the rise in sold repossessions, leading to exits from the portfolio, which would otherwise still remain part of these arrears figures."

"Stronger house price performance in the London area in recent months may have resulted in the rise in repossessions as lenders take advantage of the better recovery prospects in the more buoyant market."

"As these repossessed properties are worked out of the portfolios, Fitch foresees that more losses will crystallise. In the case of Farringdon Mortgages No. 1 Plc, a substantial rise in losses in the quarter ultimately led to the second drawing on its reserve fund."

posted by Ben Jones @ 11:11 AM