RMBS

  • Investment loan performance examined

    Morningstar reports that recently it has been presented with a new type of underwriting for loans made to landlords backed by single properties. Typically, these loans are underwritten as consumer loans, with the borrower's income, assets and credit taken into consideration. The new loans, however, are underwritten as business-purpose loans and, as such, rely more on the rental income of .......

    News Round-up 3 March 2016

  • Associations confirm STS support

    AFME, the European Fund and Asset Management Association (EFAMA), the International Capital Market Association (ICMA) and Insurance Europe have issued a joint paper backing EU efforts to develop a robust and successful STS framework. The associations believe that STS and the associated CMU could play a pivotal role in enabling non-bank funding alternatives across the region.

    The joint paper affirms .......

    News Round-up 3 March 2016

  • Euro secondary slows

    This week's recovery in the European securitisation secondary market slowed yesterday.

    Despite increasingly positive market sentiment the anticipated continued uptick failed to materialise yesterday and flows thinned once more. Nevertheless, the wider market story was sufficient to keep most secondary spreads flat to slightly tighter.

    While a few buyers are in evidence sellers are now more elusive and BWICs are largely absent .......

    SCIWire 3 March 2016

  • RMBS upgraded on model error

    Fitch has upgraded five tranches of the Eurohome UK series 2007-1 and 2007-2 transactions, following the discovery of an inconsistent calculation in its UK RMBS surveillance model. The inconsistency had resulted in weighted average foreclosure frequencies that were too high.

    Specifically, the class B1 and B2 notes from Eurohome UK Mortgages 2007-1 have been upgraded to single-B (from triple-C), while .......

    News Round-up 2 March 2016

  • Ocwen faces further investigation

    Ocwen has disclosed that it is the subject of a fresh investigation by the US SEC. The news comes after the servicer recently settled a US$2m penalty with the regulator for misstating financial results, following its use of a flawed methodology to value complex mortgage assets (SCI 21 January).

    In its annual report, Ocwen revealed that it received a letter from the SEC .......

    Job Swaps 2 March 2016

  • Euro secondary improves

    The European securitisation secondary market continues to improve as broader markets remain stable.

    "The market is improving although yesterday was quiet overall," says one trader. "Tone is definitely better, but we're not yet seeing that much volume."

    At the same time, the trader adds: "Prices are picking up albeit quite slowly. We're noticeably lagging wider credit in that respect."

    Improvement was .......

    SCIWire 2 March 2016

  • SFR rent trends examined

    Property managers in single-family rental securitisations appear to have been steadily driving rents higher, according to a recent Morningstar Credit Ratings analysis. The study shows that these increases have come from renewals more often than new tenants for vacant properties.

    "It is in the interest of single-family rental securitisations for property managers to keep properties occupied by maintaining high renewal .......

    News Round-up 1 March 2016

  • Deal agent principles issued

    The Association of Institutional Investors has released a set of principles promoting a 'deal agent framework', which it believes would significantly enhance the governance protocols built into current US RMBS structures. The proposal seeks to reform private label RMBS contracts by providing fair investor protections, increased transparency and a flexible framework for adapting to unexpected events.

    "I believe the deal .......

    News Round-up 1 March 2016

  • Freddie enhances disclosures

    Freddie Mac has expanded its disclosures for its single-family credit transfer initiatives to help provide investors with additional information to analyse. The GSE has also released details of its second STACR offering of the year, STACR 2016-HQA1.

    The enhanced disclosures include quarterly updates on credit scores for outstanding loans in all transactions and mark-to-market LTVs that leverage the estimated property .......

    News Round-up 1 March 2016

  • UBS settlement welcomed

    The president and ceo of the National Association of Federal Credit Unions (NAFCU), Dan Berger, has described UBS' agreement last week to pay US$33m in compensation over faulty pre-crisis RMBS as "welcome news". The settlement is meant to provide recovery on toxic assets, which the NCUA says caused losses to corporate credit unions that invested in the products based on untrue statements. The NCUA also accepted .......

    Job Swaps 1 March 2016

  • Euro secondary positive

    The European securitisation secondary market continues to stay positive in line with sentiment in wider markets.

    "Market tone is pretty constructive after a few stable sessions in broader markets," says one trader. "Consequently we're seeing a few people now looking to add."

    However, the trader continues: "Liquidity remains pretty thin and we're not seeing many BWICs. What action there is .......

    SCIWire 1 March 2016

  • Fannie NPL pool purchased

    New Jersey Community Capital (NJCC) is the winning bidder for Fannie Mae's second community impact pool of non-performing loans. NJCC purchased the loans through its affiliate, the Community Loan Fund of New Jersey.

    The transaction is expected to close on 21 April and includes 53 loans on properties in the Miami area with an unpaid principal balance of approximately US$13.2m. .......

    News Round-up 29 February 2016

  • Apollo merger questioned

    Apollo Commercial Real Estate Finance (ARI) is set to buy Apollo Residential Mortgage (AMTG) for a combination of cash and stock which values AMTG at US$14.59 per share, representing a premium of around 44%. The transaction values AMTG at approximately US$641m.

    The transaction has been approved by both boards of directors, but law firm Harwood Feffer is investigating potential claims .......

    Job Swaps 29 February 2016

  • Foreclosure precedent set

    A recent ruling by the California Supreme Court affirming the right of mortgage borrowers to continue challenging foreclosures years after a securitisation has closed will be credit negative for pre-crisis RMBS, says Moody's in its latest Credit Outlook. The rating agency warns that the ruling leaves an open door for other borrowers to press similar claims of void mortgage assignments and .......

    News 29 February 2016

  • Credit policy tightening welcomed

    Investors in future Australian RMBS are expected to benefit from the tighter credit policies set out by the country's regulators. Lenders now have to apply interest rate buffers on a borrower's existing debt in serviceability calculations, whereas previously it had been common practice not to stress interest rates on existing debt.

    The Australian Prudential Regulatory Authority and Australian Securities and .......

    News Round-up 29 February 2016

  • MBS trading team formed

    Mitsubishi UFJ Financial Group is building a US MBS trading team and hired Dave Cannon in 4Q15 to lead the effort. Cannon arrived from RBS, where he was co-head of ABS and MBS trading. The new trading team will focus on agency MBS and began trading in US mortgage securities this month.

    .......

    Job Swaps 29 February 2016

  • Euro secondary flurry

    The European securitisation secondary market saw a flurry of activity on Friday.

    After declining volumes throughout the week the final session saw an uptick thanks to impending month-end and anticipation of a quiet week ahead. The sectors that saw most activity were the usual suspects - prime assets and higher quality peripherals - with trades going through both on- and .......

    SCIWire 29 February 2016

  • Mortgage movers

    Non-bank lenders reshaping UK RMBS

    Tough capital constraints are weighing on the incentive of large incumbent lenders to maintain a strong presence in the UK RMBS market. This has paved the way for a variety of new lenders - including asset managers - to enter the sector, prompting a shift in its landscape.

    Last year saw Kensington Mortgages become the largest securitiser of UK RMBS, .......

    News Analysis 26 February 2016

  • Euro secondary slips

    Activity and pricing levels have slipped further in the European securitisation secondary market.

    Yesterday saw further weakness in Portuguese paper as the aftermath of the BCP tender pushed bonds out further during the session after they had opened wider on the previous day's close. Also in peripherals, yesterday's Spanish seniors BWIC only partially traded.

    Meanwhile in core assets spreads are .......

    SCIWire 26 February 2016

  • Brexit implications weighed

    The UK will hold a referendum on 23 June to decide whether to stay within the EU. Uncertainty about a potential 'Brexit' is expected to cause technical weakness in UK securitisation markets in the meantime.

    JPMorgan European ABS analysts expect investors to demand increased risk premia to hold UK risk between now and June. Benchmark anchor markets are already pricing .......

    News 25 February 2016

  • Dispute framework benefits outlined

    The new independent dispute resolution (IDR) process recently adopted by Fannie Mae and Freddie Mac could be particularly helpful for more quickly resolving representation and warranty (R&W) issues surrounding credit risk transfers (CRT), according to S&P. The agency says the process could expedite the determination of underwriting defects on reference obligations in CRT deals.

    This could result in payments to investors that .......

    News Round-up 25 February 2016
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