Jumbo fixed and Jumbo ARM mortgages have experienced the largest increase in 60+ day delinquencies on a percent basis in all seven major product types, which include Alt-A fixed, subprime fixed, Alt-A ARM, subprime ARM and option ARM. The delinquency pipelines for these two products have nearly doubled since November, according to the April delinquencies analysis by FTN Financial.
The 60+day percentage for 07 vintage Jumbo ARMs swelled to 12.67. This is the only product type where the total of the 60+ percentage and the cum default percentage is worse for the 07 vintage than the 06 vintage, analysts said.
Additionally, voluntary prepayments are moving at a moderately brisk pace for Jumbo Fixed and Jumbo ARMs, while are less robust for the lower quality cohorts, FTN analysts said. Conversely, the involuntary payments are fast for the lower cohort mortgages and more sluggish for the Jumbo Fixed and Jumbo ARMs.
Jumbo fixed loss severities saw a decline from 40.3 to 30.3, while all the other collateral types experienced slightly higher severities. All products saw their HPA-adjusted LTV ratios increase by 1%-2% for the 04-07 vintages.