Fitch: Lowest Year-End Mortgage Arrears in Four Years

(The following statement was released by the rating agency)

Link to Fitch Ratings' Report: Mortgage Market Index – The Dinkum RMBS Index – 
4Q13 

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=738515

SYDNEY, March 04 (Fitch) Fitch Ratings' Dinkum RMBS Index recorded 30+ days 
arrears of 1.21% in 4Q13, the lowest end-of-year levels since 2009. In a strong 
housing market and low interest rate environment, the increase of 2bp was below 
the average fourth-quarter rise of 7bp over the past four years.

Arrears remained overall stable, with 30-59 and 60-89 days arrears rising by 1bp 
and 2bp respectively, while 90+ days arrears improved by 1bp. Higher house 
prices and decreased selling times benefitted long-dated arrears, improving 90+ 
days arrears across all Dinkum RMBS indices. 

The Australian economy remained resilient, with the strong housing market and 
low interest rates slowing the effects of increased unemployment and cost of 
living. As borrowers continue to take advantage of low interest rates, prudent 
lending standards remain essential, as they directly impact borrowers' capacity 
to deal with future financial distress. Fitch believes that interest rates and 
unemployment will continue to be the main drivers of mortgage performance.

Fitch's Dinkum Index is designed to track the arrears and lenders mortgage 
insurance performance of the mortgages underlying Australian Residential 
Mortgage-Backed Securities (RMBS). 

Current and historic Dinkum Index data is now available in excel form for 
reference through the full report entitled 'The Dinkum RMBS Index - 4Q13', 
available at www.fitchratings.com, or by clicking the link above.

Contact:

Hai Duong Le

Analyst

+612 8256 0358

Fitch Australia Pty Ltd. Level 15, 77 King Street, Sydney, NSW 2000 

James Zanesi

Director

+612 8256 0306

Natasha Vojvodic 

Senior Director, 

Head of Australian and New Zealand Structured Finance 

+612 8256 0350

Media Relations: Iselle Gonzalez, Sydney, Tel: +61 2 8256 0326, Email: 
iselle.gonzalez@fitchratings.com.

Additional information is available on www.fitchratings.com.

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