Coto Housing Blog

You can read the whole article, “Fitch: New Year, No Improvement as U.S. Prime Jumbo RMBS Delinquencies Approach 10%“, on Business Wire.

U.S. prime jumbo loan performance continued to weaken in January as serious delinquencies rose for the 32nd consecutive month, according to Fitch Ratings in the latest edition of Performance Metrics.

“The new year has brought no relief from declining jumbo loan performance,” said Managing Director Vincent Barberio. “The trend line for delinquencies indicates the 10% level could be reached as early as next month.”

Although prime jumbo loan delinquencies began to rise in the second quarter of 2007, they accelerated in 2009 nearly tripling over the course of the year. Florida saw the biggest monthly jump of the five states with the highest volume of jumbo loans outstanding.

California: 11.3%, up from 10.8% (44% share of the market);

Fitch is talking about PRIME Jumbo, folks.  These are the AAA borrowers.