Fewer Borrowers Fail to Pay Their Mortgages

Fewer Borrowers Fail to Pay Their Mortgages

The number of U.S. borrowers failing to pay their mortgages has fallen significantly in the last few months, according to RBS Securities Inc.

Of borrowers with subprime loans wrapped into bonds issued in 2007 who had never previously missed a payment, an average of 2.6 percent failed to pay at least once in March, April or May. That’s a drop from 3.7 percent in February and a 15 percent decline after seasonal adjustments, RBS calculates.

“We believe that the last few months’ performance points to a fundamentally positive shift in borrower behavior,” Paul Jablansky, Desmond Macauley, and Ying Wang, analysts at the Royal Bank of Scotland, wrote in a June 8 report.

Source: Bloomberg, Jody Shenn (06/10/2010)