Mortgage lender Downey Financial saw its non-performing assets increase to $388 million at the end of October, a 50% jump in just three months’ time.
Downey reported that 2.74% of its $14.18 billion in assets were nonperforming at the end of October, compared with 1.77% at the end of July. (At the end of July it had reported assets of $14.66 billion.)
In a research note, Credit Suisse said, “With [tag-cat]Adjustable Rate Mortgage[tag-cat] resets looming, coupled with declining home prices, borrowers are finding it much more difficult to refinance existing loans, exacerbating Downey’s delinquency problem”.
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