Bangkok--20 Jul--Standard & Poor's
The first quarter of 2011 brought some improvement in rated U.S. housing finance agencies' (HFA) whole-loan mortgage portfolios, ending a streak of three quarters in which the delinquency rate rose for at least 20 programs, according to a report published July 18, 2011, on RatingsDirect on the Global Credit Portal.
The report, titled "U.S. Housing Finance Agencies' Single-Family Bond Program Loan Performance Improves In First Quarter," notes that single-family loan delinquencies declined by almost 1% and that the gap between HFA bond program delinquency and that of comparable state loans narrowed considerably.
The report lists the following as Standard & Poor's Ratings Services' key findings in its survey of HFA loans in single-family bond programs:
The delinquency rate of loans in HFA bond programs was 6.67%, matching the all-time low in the second quarter of 2010. The delinquency rate of comparable state loans was 6.52%, the lowest since the second quarter of 2009. The gap between the HFA loan delinquency rate and the state delinquency rate was 0.14%, an insignificant difference that represents the narrowest spread since Standard & Poor's began tracking loan delinquency in 2006. The report also notes that although HFA bond program performance improved significantly in the first quarters, delinquency remains above that from one year ago, and several factors could result in higher rates.
"We believe that one of the reasons that delinquencies have been so high among HFA programs is that most HFAs are not adding new loans to these bond programs, either because the programs are not originating loans, because they are purchasing loans within New Issue Bond Program indentures, or because they are selling loans directly to investors without issuing bonds," said Standard & Poor's credit analyst Lawrence Witte.
The report is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to
[email protected]. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.
Media Contact:
Ola Fadahunsi, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Lawrence Witte, San Francisco (1) 415-371-5037
Valerie White, New York (1) 212-438-2078
Jose Cruz, San Francisco 415-371-5053