Mortgage defaults on the rise

Mortgage defaults on the rise

The number of Irish mortgages in default continues to rise, according to the latest analysis of statistics by ratings agency Moody’s.

The performance of the Irish prime residential mortgage-backed securities (RMBS) market “steadily worsened” during the three months to October 2012, according to Moody’s.

From July to October 2012 the 90-plus day delinquency trend and 360-plus day delinquent loans, which are used as a proxy for defaults, rose steeply to 16.52 per cent from 15.19 per cent and and to 7.91 per cent from 6.58 per cent respectively of the outstanding portfolios.

As of October 2012, the 19 Moody’s-rated Irish prime RMBS transactions had an outstanding pool balance of €48.97 billion, a year-on-year decrease of 7.1 per cent.

Moody’s outlook for Irish RMBS is negative.

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