...Asset Performance Stable: Serious delinquency (60+ day) rates continued their steady improvement in the first quarter, although at a slower rate. The modest improvement reflects rising home prices, positive selection among remaining borrowers and continued job growth. Liquidation Rates Declined: Liquidation rates (CDRs) declined for the seventh straight quarter and were at the lowest level since the start of 2008. The declines were due to falling distressed inventory and a continued drop in the use of short sales. Rates Increased: Mortgage rates remained relatively flat at the start of the quarter before falling marginally. On a quarter-over-quarter basis, rates are up roughly 7 bps. Home Prices Rose: National home prices continued their strong gains, with eight straight quarters of growth and prices up more than 11% over the past year. However, Fitch Ratings believes that certain regions remain overvalued, where the rate of price growth is not supported by underlying fundamental drivers....
