Rise in non conforming borrowers experiencing mortgage stress

Mortgage delinquencies for borrowers with non conforming home loans are on the rise, despite a drop in unemployment and signs that the domestic economy is improving. This suggests that a growing number of home owners are finding themselves in mortgage stress.

According to a report by Moody’s Investors Services, 13% of borrowers with non conforming home loans are in arrears on their loan repayments, up from 12.1% last quarter.


The rise in the number of non conforming mortgages will cause the big four to rethink their decision to lower provisions for bad debt.