Securitized prime jumbo mortgage loans weakened slightly in May 2007, according to Moody's Investors Service Jumbo Mortgage Credit Indexes. The May 60+ delinquency rate was 0.422%, increasing from 0.397% in April and from 0.268% in May 2006.
Prepayments, however remained low, with a one month CPR ranging between 14% to 18% over the last twelve months.
The Jumbo Mortgage Indexes track the aggregate performance of prime-quality non-conforming loans backing securities rated by Moody's.
The rating agency also noted that the home equity sector performance deteriorated in May 2007, according to Moody''s Home Equity Index Composite. The 60+ delinquency rate based on current balance rose to 12.35% from 11.63% in April. The foreclosure and REO rate indexes reached 4.89% and 2.38%, respectively and the charge-off rate index rose to 2.50% from its value of 2.26% one month prior.