(Repeat for additional subscribers)
Feb 19 (The following statement was released by the rating agency)
Fitch Ratings says the number of new borrowers
entering arrears in the Netherlands continues to increase, which in combination
with the prolonged time taken to recover on defaulted loans, has led to another
increase in the volume of borrowers in late stage delinquencies.
Although still well-below levels seen in many other European countries, the
proportion of loans in Fitch-rated Dutch RMBS that was in arrears by more than
three months reached 0.82% in January 2014, up 5bp from the previous quarter.
The agency expects arrears to increase further and eventually peak in 2014, as
the lagged effects of rising unemployment take their toll.
Meanwhile, losses across RMBS portfolios remain limited, with the cumulative
balance reaching 13bp of the original portfolio. Most of the losses have been
generated from the non-conforming portfolios which have on average incurred
With home prices showing a slight upward movement in recent months, the index
currently stands 20% below peak levels. Fitch expects home prices to bottom out
Fitch's 'Mortgage Market Index - Netherlands' is part of the agency's quarterly
series of index reports. It includes information on the performance of
residential mortgages, predominantly from RMBS transactions, but also those held
on bank balance sheets. The report sets the housing market against the
macroeconomic background and provides commentary on the emerging trends. The
report is available at www.fitchratings.com or by clicking on the link above.
Link to Fitch Ratings' Report: Mortgage Market Index - Netherlands (1Q 2014)