New York, NY, November 10, 2006--Residential loans to the riskiest borrowers are sinking into delinquency 50 percent faster in 2006 than last year, according to UBS Securities.
UBS, one of the top 10 underwriters of mortgage bonds, says 2006 subprime loans that are delinquent more than 60 days rose to 2.4 percent after six months, compared with 1.6 percent for loans originated last year.
Subprime mortgage bonds, sold on Wall Street as "home-equity asset-backed securities," have nearly doubled since 2002 to $565 billion outstanding.
Second-lien loans and mortgages with a high loan-to-value level also are deteriorating faster this year than they did last year, according to the analysts.
