Pools of loans originated in Southern California during the early 1990s continue to show disappointing results.
Duff & Phelps, the New York credit rating agency, last week downgraded six more transactions backed by a high ratio of residential mortgages originated in Southern California.
All six were backed loans of B and C quality - those made to borrowers with blemished credit. Two transactions were originated by Quality Mortgage in 1993, four by Long Beach Bank in 1992 and 1993.
Delinquency, foreclosure, and real-estate-owned rates were unexpectedly high in the pools in question, Duff & Phelps reported.
In total, the ratings firm this year has downgraded four pools of residential mortgages originated by Long Beach.