PMI experiences higher low doc loan arrears
Arrears on low documentation loans “are trending up and will continue to trend up for some time,” PMI Mortgage Insurance said. PMI's chief, Ian Graham, said low-doc loans were running at about 2.5 times higher than they were for standard loans. This estimate is slightly higher than the ratio of two times arrears on low doc loans reported by Standard & Poor's for securitised home loans. Graham said that PMI's arrears experience for low doc loans was in line with expectations.