The number of mortgage loans whose amount exceeds the present value of the mortgaged property could touch 20% if the house prices were to fall 30% from the levels reached in 2007, according to a report from the department of financial structure Standard and Poor's. The S & P study, carried out over 800,000 home loan over 90 asset-backed securities backed by mortgage loans (RMBS), estimates that the number of loans whose amount exceeds the value of the mortgaged property is currently at 8%.
The report highlights regional differences, as in the Levant, Andalusia and the islands have default levels of 6% compared to 4% from other areas of the northern peninsula.
In this sense, the credit analyst Arnaud Checconi regional states that this difference reflects the different degree of deterioration of the labor market from the collapse of the construction sector.
Likewise, S & P indicates that loans underwritten in 2006 and 2007 have default rates much higher, between 7.5% and 8.5%, than those previously employed, particularly those formalized until 2003, whose default rate does not reach 2%.
According to S & P, the recovery of the English economy continue to be slow, you have to add the "difficulties" of restructuring the banking system.
The global economic crisis, the report argues, has affected differently to different types of financial assets, and bonds backed by English mortgages are among the hardest hit in Europe.
Until the third quarter of 2008 S & P had downgraded the ratings of English mortgage bonds, but since then the agency has hit 25% of the total, of which one in four, 6% of total - have been rated "D" the worst possible.
La Vanguardia 10/06/1910
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