Standard&Poor´s calculates that the default of mortgages used as collaterals in securitizations has already reached 7,76% in the third quarter. As well, the so called “severe default”, that is, with more than three months delay in payments, has reached to 5,82%, from the 5,57% in June. The rating agency has stressed that this year, the increase reaches 40%.
The analysts from the rating agency explain that there are many differences in the mortgages used as collaterals depending on their duration and the institution that has originated them. It declares that those from Bankinter, Barclays, Ibercaja Banco and BBVA are among those with less default. On the other side, those from CatalunyaCaixa, Unión de Créditos Inmobiliarios, UCI, Banco Pastor (now Popular), Caja Madrid (now Bankia) and Banco CAM (now Sabadell) are those with more problems.
S&P emphasizes the strong and quick deterioration of the credits from the UCI and the nationalized CatalunyaCaixa. The worse situation is that of the mortgages awarded between 2005 and 2007.
The forecast of S&P is not optimistic. The agency considers that the default in mortgages will continue rising, due to the economic situation in Spain, that continues having a very high unemployment rate and the fall of housing prices, that will continue next year. The agency stresses that the new regulation on refinancing which has come into force at the end of the third quarter will oblige many institutions to reclassify mortgages as default that until now were considered normal.