Residential mortgage loans in negative equity June quarter 2010

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29 Jul 2010

Residential mortgage loans in negative equity June quarter 2010

The Hong Kong Monetary Authority announced today (Thursday) the results of its latest survey on residential mortgage loans (RMLs) in negative equity1.

The estimated number of RMLs in negative equity stood at 310 cases2 at end-June 2010, compared with 303 cases at end-March 2010. The aggregate value of RMLs in negative equity was little changed at HK$0.5 billion at end-June 2010. This compared with HK$0.4 billion at end-March 2010.

The unsecured portion of these loans hovered around HK$0.1 billion. The three-month delinquency ratio3 of the RMLs in negative equity fell to 0% from 0.24% at end-March 2010.

Annex

For media enquiries, please contact:
Anissa Wong, Manager (Communications), at 2878 1802 or
Yokee Wong, Manager (Communications), at 2878 1213

Hong Kong Monetary Authority
29 July 2010

 

1The mortgage portfolio of the surveyed authorized institutions represents about 98% of the industry total. The survey results have been extrapolated to approximate the position of the banking sector as a whole.

2The figures derived from the survey relate only to RMLs provided by authorized institutions on the basis of first mortgages and which the reporting institution knows to be in negative equity (i.e. the outstanding loan amount with the reporting institution exceeds the current market value of the mortgaged property). Not included in these figures are some RMLs associated with co-financing schemes which would be in negative equity if the second mortgages were taken into account. The extent to which such RMLs are in negative equity is not known because authorized institutions do not maintain records on the outstanding balances of the second mortgages.

3RMLs in negative equity delinquent for more than three months as a percentage of total RMLs in negative equity.

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Last revision date : 29 July 2010