Digital Finance Analytics (DFA) Blog
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From InvestorDaily. S&P Global Ratings has found prime home loan arrears for the third quarter of 2016 were 25 per cent higher than the same quarter last year, owing to lower wage growth, higher indebtedness and underemployment. According to the ratings agency, 1.14 per cent of mortgages underlying Australia’s prime residential mortgage-backed securities (RMBS) transactions were … Continue reading “Australian mortgage arrears up 25%: S&P”
The results of the 2016 UK Bank stress testing has been released by the Prudential Regulation Authority (PRA). The test did not reveal capital inadequacies for four out of the seven participating banks but the Royal Bank of Scotland Group (RBS), Barclays and Standard Chartered revealed some capital inadequacies and remedial work is required. However, … Continue reading “Some UK Banks Fail Latest Stress Tests”
Westpac Group today announced a Full Year 2016 statutory net profit of $7,445 million, down 7% compared to the prior corresponding period. However, cash earnings were $7,822 million, in line with the prior year, and above expectations, thanks mainly to a lower than anticipated impairment charge. The balance sheet remains strong, with NSFR above 100%. … Continue reading “Westpac FY16 Profit Down 7% – Mortgage lending the pillar within the pillar!”
From The NewDaily Stress cracks are starting to appear in the housing market with mortgage delinquencies rising to the highest level in three years. And in some states the number of people falling behind on payments has reached record levels. The figures come from research produced by ratings agency Moody’s Investor Services and demonstrates that, despite … Continue reading “Mortgage Delinquencies Continue To Rise”
From News.com.au. IF YOU’RE already starting to feel the mortgage pinch, this is bad news. New economic modelling shows mortgage defaults are set to rise over the next 12-18 months, and those who will be most affected will surprise you. The research conducted by Digital Finance Analytics, based on its extensive household surveys, shows those … Continue reading “Home loan stress to rise despite low rates”
We have re-run our Probability of Mortgage Default modelling, based on our most recent household surveys. This modelling takes the basic household finance data in our survey, and models the impact of economic changes, inflation, income growth, and other factors, to estimate the probability of 30+ day mortgage default at a post code level. As … Continue reading “Probability Of Mortgage Default Rises”
Financial stress is now a fact of life for more than one in four Australian workers who say they have low confidence in their financial position and find it difficult to make ends meet. New research, undertaken by AMP for its 2016 Financial Wellness report, revealed Australians’ confidence in their finances continued to decrease in … Continue reading “One in four Australian workers financially stressed”
Fitch Ratings says new Canadian Department of Finance mortgage rules to reduce speculation in residential real estate are a step toward cooling the housing market in major cities including Toronto and Vancouver. The new rules could result in improved credit quality in certain residential covered bond programs. The rules include applying an interest rate stress … Continue reading “Canada Mortgage Rules a Step Toward Cooling Home Prices”
The ABC reports that mortgage fraud is “systemic” in Australia, with more than a quarter of recent home buyers admitting they misrepresented some information on their loan application. The disturbing results come from a survey of 1,228 people who had taken out a mortgage over the past two years, conducted by investment bank UBS. The … Continue reading “Mortgage fraud ‘systemic’ in Australia, UBS survey shows”
BOQ announced a 1% uplift in Cash Earnings to $360 million for the 2016 financial year and increased Statutory Net Profit after Tax 6% to $338 million. Cost management saved the day, as net interest margins were squeezed, and lending growth slowed in the second half. Lending grew 5% or $2.2 billion at 0.8x System, … Continue reading “Bank of Queensland FY16 Result Higher, But Stressed”