Low doc borrowers late with repayments 24 July 2008
More than fourteen per cent of borrowers who have non-conforming loans are in arrears, a percentage that has stabilised over the last quarter. Total home loans in arrears, meaning repayments are 30 or more days past due climbed one basis point up to 1.49 per cent of the total number of loans on issue in Australia in May said Standard & Poors yesterday. Non-bank originators have the highest level of arrears among prime loan pools, and at 2.28 per cent are pushing four times the level of arrears among credit unions and building societies. The arrears trends are worst among low doc loan pools (at 2.86 per cent, twice the level of full doc). The fastest growing level of arrears are those of regional banks: Bank of Queensland, Bendigo and Adelaide Bank and Suncorp. Arrears for regional banks increased by 50 basis points to 1.40 per cent over the five months to May 2008.
