UK non-conforming RMBS performance improved in the three months ending November 2014, according to Moody's. Delinquencies exceeding 90 days fell to 14.4% from 15.6% the previous year, while losses dropped to 0.1% from 0.2%. The weighted average loss severity declined too, to 19.6% in November 2014 from 27.2% a year earlier, reflecting house price growth. On December 9 the agency put 81 tranches from 17 deals on review for upgrade due to a better than expected performance of some deals and the deleveraging of others. Moody's has a positive outlook for the sector this year, forecasting an improved performance on the back of economic momentum. It expects house price growth to be around 5% and unemployment to drop to 5.9% from an expected final figure of 6.5% for 2014.
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