May remittance reports, which represent the April collection period, showed an aggregate rise in the 60+and 90+ day delinquency buckets, as well as rises in foreclosure and REO inventories, Barclays Capital reported. The reports were released today.
Acccording to Barclays, the aggregate 30-59 day delinquency bucket rose for the 07-1 and 07-2 Series and dropped for the 06-1 and 06-2 Series.
Monthly aggregate 60+ day delinquencies increased 99 basis points for Series 06-1, 201 basis points for Series 06-2, 154 basis points for Series 07-1, and 176 basis points for Series 07-2. This is compared with the 123 basis points, 191 basis points, 130 basis points, and 166 basis points increases in last month's reports, respectively.
Nonetheless, on an individual basis, Barclays said that the growth rate of 60+ delinquencies dropped for a majority of the trusts tracked. By contrast, Barclays' expected a subprime collateral performance seasonal deterioration.
Although some may attribute the improved performance to borrowers' anticipation of tax rebate checks, Barclays analysts said that similar previous fiscal stimulus packages have had little to no effect on subprime mortgage performance.
According to them, early stage cure and delinquency roll rates reflected very little reaction to the anticipated or actual receipt of tax rebates from previous fiscal stimulus.