...Arrears Decline: Loans in three-months-plus (3m+) arrears continue to fall across all UK RMBS sectors. The year-on-year (yoy) volume decline across the buy-to-let and prime sectors was 23.9% and 18.5%, respectively, compared to 8.5% for the non-conforming sector. Possession Activities Stable: The low interest rate environment continues to support affordability of existing mortgages, and a limited pipeline of potential lender possession cases. Period possession volumes remain broadly stable across all three sectors (prime, non- conforming and BTL). Loss Severity Spike: Only a small number of properties in lender possession were sold in 4Q14, but period loss severity was high. This trend is not expected to continue and had no impact on cumulative losses in the sector. Home Price Growth Slows: Indices reported lower growth rates in the last three months of 2014. The Halifax index was up 30bp in the three months to December, compared to an average 2.4% in previous quarters of 2014....
