...Originator Action Boosts Performance: Over the past three months, asset performance has improved, as lender intervention has resulted in a significant number of defaulted borrowers returning to lower delinquency or performing statuses. Non-Performing Loans Remain Stable: In 4Q14, the volume of delinquent and defaulted loans remained under 11%, broadly the same as the previous quarter. Limited Lending Activity: Lending activity contracted by more than 50% in the first 11 months of 2014. No sudden spike is likely in 2015 as access to credit is expected to remain constrained. Housing Market Unaffected by Reforms: In 2014, government intervention had a minimal effect on housing market turnover. Home prices fell by 6%. Further contraction between 4% and 6% is expected in 2015. High Political Risk: "Grexit" remains unlikely, but Fitch placed the Sovereign on Negative Outlook due to intensified political risk and associated potential liquidity issues....
