The Hong Kong Monetary Authority announced today the results of its latest survey on residential mortgage loans (RMLs) in negative equity1.
The estimated number of RMLs in negative equity fell to 152 cases2 at end-September 2010 from 310 cases at end-June 2010. The aggregate value of RMLs in negative equity declined to HK$0.2 billion at end-September 2010 compared with HK$0.5 billion at end-June 2010.
The unsecured portion of these loans remained around HK$0.1 billion. The three-month delinquency ratio3 of the RMLs in negative equity increased to 0.93% from 0% at end-June 2010.
For media enquiries, please contact:
Peggy Lo, Manager (Communications), at 2878 1687 or
Herbert Lam, Manager (Communications), at 2878 1213
Hong Kong Monetary Authority
1 November 2010
1 The 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.
2 The 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.