Half of all performing US RMBS mortgage borrowers will see payment increases over the next five years, according to Fitch Ratings in a new report.
Half of all performing US RMBS mortgage borrowers will see payment increases over the next five years, according to Fitch Ratings in a new report. Payment increases have historically lead to higher default rates among mortgage borrowers and loans particularly vulnerable include those with adjustable interest rates, interest-only payments and certain modified loans. “Interest-only loans are in store for the largest payment increases,' said Director Sean Nelson, “As a wave of peak vintage 10-year IOs approaches recast, many mortgage borrowers could see their monthly payments more than double.”
