The number of days that a
Receivable has been in Arrears. This is typically based on Scheduled Balance Arrears Methodology or Missed Payments Arrears Methodology for pools of
Mortgage Loans, or such other methodology as determined by the
Servicer. Refer also to Arrears. Days in arrears is often refered to as DIA.
Here are some examples of DIA in securitisation:
- A securitisation of mortgages might have a maximum DIA of 90 days. This means that any mortgage that is more than 90 days in arrears will be excluded from the securitisation.
- A securitisation of credit cards might have a maximum DIA of 60 days. This means that any credit card that is more than 60 days in arrears will be excluded from the securitisation.
DIA is a standard measure of credit risk in securitisation, and it is important for investors to understand how it works.