NEW YORK, NY -- The percentage of loans paying off on their
balloon date has exceeded 60% for the past three months. In December, the
payoff rate dropped. The percentage of loans paying off in September, October,
and November was 68.2%, 60.7%, and 62.6% respectively. Last month, 54.5% of
loans reaching their balloon date paid off.
Despite the fall off, the December
rate of 54.5% is well above the 12-month moving average of 47.0%. (This number
sums the averages of each month and divides by 12, there was no balance
weighting across the months.)
At the end of the summer, we mentioned
that the payoff rate could move to the upside in the coming months.
We noted
that for the rest of the year, loans reaching their maturity date should be more
heavily skewed to earlier vintages, as loans from that time frame were made with
lower leverage and more reasonable valuations.
The result should be better
payoff numbers. The data from the past four months has confirmed this.
For a compete copy of the company’s news release, please
contact:
Eric R. Gerard
Senior Vice President
Great Ink Communications
27 Union Square West, Suite 205
New York, NY 10001
(212) 741-2977
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