Late mortgage repayments hit new lows

Story link: Late mortgage repayments hit new lows

Mortgage repayments defaults are at the highest ever, with a huge increase in the number of sub prime mortgage lenders slowly increasing, now at their highest levels ever.
Financial companies can use the repayment levels as an indicator as to whether the individual will default the payment in the long term, so they can begin to gauge their losses for 2009!

Late mortgage repayments hit new highs

Households are finding it harder to pay debts on time, with the number of subprime mortgage holders falling behind on payments at its highest ever.
Standard & Poor’s, the credit rating agency, examined the performance of loans bundled into securities – bonds or notes – and sold to investors. The rate of delinquent or overdue payments, particularly those late by 90 days or more, are a leading indicator of the losses that lenders are likely to make on those loans.