The number of residential mortgage loans in negative equity, after having risen for two consecutive quarters, dropped by 1,790 cases to about 9,200 in the first quarter, with an aggregate value of $16 billion, the Monetary Authority says.

Compared with the peak of about 106,000 cases at end-June 2003, the number has fallen 91%.

The estimated unsecured portion of these loans was little changed at $2 billion. Correspondingly, the loan-to-value ratio of the negative equity residential mortgage loans remained unchanged at 113%.

The three-month delinquency ratio of the negative equity residential mortgage loans rose to 1.04% from 0.89% at the end of December.