February 2011 - Gruppo Banca Carige

Mortgage and RMBS SnapshotEuropean House PricesEuropean Late Stage Arrears• While the credit performance of Italian mortgages andRMBS pools has weakened slightly since the onset of thecredit crisis, the deterioration has not been particularlylarge on average.• Since the end of 2009, RMBS credit trends haveimproved slightly with late stage arrears in the sector as awhole falling from 2.1% at the peak to 1.6% morerecently.• Looking forward the low household leverage inItaly is a positive (residential mortgages outstanding areonly 23% of GDP which can be compared to 62% inSpain for example).•Mortgage lending never really became particularly looseand – perhaps as a result – house prices never quite roseas much as in other jurisdictions.Prime Repayment RateSources: Moodys, DBGRUPPO CARIGE 19