The Australian --- Page: 34 : 14 March 2007 Original article by Richard Gluyas
ABIX Summary
The non-conforming or low-documentation mortgage loans sector in Australia is in a healthy state according to experts. In the US, sub-prime segment provider New Century Financial has encountered severe problems due to a housing slump, and its lenders have moved on it. In Australia however, low-doc firm Bluestone has just successfully completed securitisation of $A800m worth of loans in early March 2007. Moody's Investors Service says the sector is unlikely to experience major problems. The respective share of overall loans that is held by the non-conforming providers is 5% in Australia and 15% in the US.
