A U.S. mortgage sub-sector historically known for its problematic performance has emerged as one of its more stable performers, according to Fitch Ratings in a new report. The manufactured housing sector has experienced very slight increases in loss severities, net loss rates and 60-day delinquencies over the last year. This is a far cry from the volatility of 2002 when the sector was disrupted with the bankruptcy of major market participants, such as Oakwood Homes and Conseco Inc. “Stable manufactured housing performance has been driven by consistent servicing, loan seasoning, and continued reductions in new unit supply,” said Director Susan Hosterman. A recently conducted rating review of Fitch’s Rated manufactured housing portfolio yielded over 90 percent in rating affirmations. Fitch also upgraded another 2 percent of its top-rated tranches due to an improvement in the relationship between credit enhancement and expected pool loss. “With the severity of liquidated existing units now stabilized, Fitch does not envision much change in manufactured housing performance over the next year,” said Hosterman. Fitch currently rates 138 manufactured housing transactions with an original balance of $55 billion and an outstanding balance of $10 billion. “With the severity of liquidated existing units now stabilized, Fitch does not envision much change in manufactured housing performance over the next year,” said Hosterman.