Delinquencies on RMBS give investors a headache

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The creditworthiness of some residential mortgage-backed securitisations is now a major cause for concern given recent increases in household debt and mortgage repossessions. In some cases, levels of delinquency on non-conforming residential mortgage portfolios has reached close to 25%. This year also saw the first downgrade of a UK RMBS tranche by Fitch, when it downgraded three tranches of Farringdon Mortgages No.1's portfolio in May.

Suzanne Albers, a director in Fitch Ratings' residential

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