Fitch warns that some US mortgage payments could double

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Half of all performing US RMBS mortgage borrowers will see payment increases over the next five years, according to Fitch Ratings in a new report. Payment increases have historically lead to higher default rates among mortgage borrowers and loans particularly vulnerable include those with adjustable interest rates, interest-only payments and certain modified loans. “Interest-only loans are in store for the largest payment increases,' said Director Sean Nelson, “As a wave of peak vintage 10-year IOs approaches recast, many mortgage borrowers could see their monthly payments more than double.”

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