The count of non-performing and re-performing loans within non-agency or private-label mortgage-backed securities (MBS) slipped 0.48% to 2.36m in October, from 2.37m in September, according to Amherst Securities Group. The firm now sees $965.4bn of private-label MBS in performing status the end of October, $476.5bn of MBS non-performing and $115.6bn of MBS re-performing. Despite the slight monthly decline in the volume of non- and re-performing private-label MBS, the gap between always performing balance and non- or re-performing continued to narrow in the month as the new default rate rose, according to Amherst data. The firm indicated 1.9% of the month-end balance — or $17.9bn — of always performing loans transitioned to non-performing status in October, while 11.5% — or $13.3bn — of re-performing loans transferred to non-performing status. Prepayment speeds among 2004 through 2007 vintage MBS continued to narrow across the board in October, particularly among Alt-A and Prime MBS. Write to Diana Golobay.