RMBS

  • Software firm acquired

    CoreLogic is set buy software firm FNC for US$475m. The agreement will see it inherit FNC's provider services in real estate collateral information technology and solutions.

    CoreLogic's Valuation Solutions Group (VSG) will act as the conduit to deploy a broader suite of property valuation capabilities following the merger of the two firms. Following the close of the transaction, FNC operations will be .......

    Job Swaps 22 December 2015

  • Freddie sells NPLs to non-profit

    Freddie Mac has sold via auction 103 deeply delinquent NPLs serviced by Wells Fargo from its mortgage investment portfolio. The US$18.4m pool of loans was sold to Community Loan Fund of New Jersey.

    The transaction is expected to settle in February 2016, after which servicing will be transferred. The loans have been delinquent for an average of approximately three years .......

    News Round-up 22 December 2015

  • RPL approach updated

    Fitch has updated its approach for rating RMBS backed by seasoned and reperforming loan (RPL) collateral. The changes include the increase of the due diligence sample size for compliance and data integrity to 100% from 20% for RPLs.

    If 100% due diligence is not conducted, Fitch may adjust its loss expectations, cap the rating or decline to rate the transaction. .......

    News Round-up 21 December 2015

  • Payment allocation scrutinised

    Kroll Bond Rating Agency has placed its ratings related to 34 classes from RPMLT 2014-1 Trust on watch developing. The agency says it is investigating principal payment allocations to certificateholders of the RMBS, which it now believes may have been misallocated.

    The transaction is collateralised by two pools of re-performing mortgage loans. The rated classes are collateralised by the Group .......

    News Round-up 21 December 2015

  • Granite redemptions scheduled

    NRAM has exercised its seller call option for Granite Mortgages 2003-2, 2003-3, 2004-1, 2004-2, 2004-3 and Granite Master Issuer in connection with the sale of the underlying mortgage loans to Cerberus European Residential Holdings (SCI passim). The proceeds will be applied to redeem the RMBS notes in full, together with the payment of any accrued interest.

    Specifically, Granite Master Issuer .......

    News Round-up 21 December 2015

  • Innovative CIRT issued

    Fannie Mae has completed its final Credit Insurance Risk Transfer deal of 2015 - the first to include adjustable-rate mortgages (ARM) in the loan pool. CIRT 2015-6 shifts credit risk on a pool of single-family loans to a panel of reinsurers.

    CIRT 2015-6 sees Fannie Mae retain risk for the first 50bp of loss on an US$8.2bn pool of loans. .......

    News Round-up 18 December 2015

  • Italian regs boost ABS

    The Bank of Italy's regulatory framework enacted in 2015 for financial intermediaries carrying out servicing activities is credit positive for all Italian structured finance deals, says Moody's. Certain types of consumer ABS deals - Cessione del Quinto (CDQ) and Delegazione di Pagamento (DP) - will benefit the most.

    Moody's notes that organisational and risk-control requirements for servicers will become stricter .......

    News Round-up 18 December 2015

  • FHFA scorecard heralds change

    The FHFA has released its 2016 scorecard for the GSEs and Common Securitization Solutions (CSS). Highlights include the imminent end to HARP and an updated timeline for the implementation of the single security initiative, as well as credit risk transfer (CRT) changes.

    The FHFA scorecard calls for the GSEs to prepare for the expiration of HARP by creating a new .......

    News 18 December 2015

  • Delavaco performance triggers breached

    The underperformance of the Delavaco loan backing FirstKey Lending 2015-SFR1 - the first multi-borrower single-family rental securitisation rated by Moody's - will have minimal impact on the deal's performance, according to the agency. This is due to the small size of the loan; the low LTV at closing (61.2%); and the cash-trap mechanisms in the transaction. The borrower has also .......

    News Round-up 18 December 2015

  • Euro secondary stalls

    Activity in the European securitisation secondary market has stalled.

    Year-end illiquidity was fully in evidence yesterday with an extremely slow day across the board and secondary spreads closed unchanged. Italian and Dutch paper did garner some interest, but saw negligible trading.

    There is currently one BWIC on today's European schedule - a single €1.9m line of QUADF 2011-1 A1 due .......

    SCIWire 18 December 2015

  • Bloomberg to buy BRAIS

    Bloomberg has agreed to acquire the Barclays Risk Analytics and Index Solutions (BRAIS) business from the bank for approximately £520m. This includes Barclays' indices on securitised products, covering US MBS and CMBS, pan-European floating and fixed rate ABS, and US and European covered bonds.

    The transaction includes the sale of intellectual property in relation to the POINT portfolio analytics tool. Barclays .......

    Job Swaps 17 December 2015

  • Greek foreclosure effect limited

    A new foreclosure framework will only offer limited benefit to Greek RMBS transactions, says Fitch. This is because lenders are unlikely to increase foreclosures in an illiquid residential property market where house prices are still falling.

    The threat of repossession may deter strategic defaulters, however. These appear to have contributed to persistent weakness in the country's mortgage market, where early- .......

    News Round-up 17 December 2015

  • Fed to maintain MBS policy

    In a unanimous decision by the FOMC, the US Fed announced yesterday that it is moving its target range for the federal funds rate up to 0.25% to 0.5% from zero to 0.25%. However, it stresses that it will maintain its existing policy of reinvesting principal payments from its holdings of agency debt and MBS.

    The bank will also continue rolling over .......

    News Round-up 17 December 2015

  • Counterparty rating actions inked

    S&P has taken various credit rating actions on 74 tranches in 33 European RMBS and ABS transactions. The move follows the downgrade of Barclays and Deutsche Bank, which are counterparties in the affected transactions (SCI passim).

    Specifically, S&P has: lowered and removed from credit watch negative its ratings on 65 tranches in 26 RMBS and two tranches in two ABS; .......

    News Round-up 17 December 2015

  • Euro secondary chugs along

    Despite wider credit market volatility the European securitisation secondary market is still maintaining its course.

    "We've kept going - there have been a few BWICs, but none of the volatility of broader markets," says one trader. "Flows have been light, but we're still chugging along."

    Overall, the trader adds: "Tone remains constructive and technicals are helping the market. We've got .......

    SCIWire 17 December 2015

  • Aussie equity cushions increase

    Rising house prices have pushed down Australian RMBS LTV ratios, says Moody's. The additional equity will be useful in absorbing potential losses, although the size of that equity cushion varies across states.

    Housing prices in Australia have risen by an average of 44% over the last seven years. Despite housing price falls in certain regions, the rating agency notes that .......

    News Round-up 16 December 2015

  • Litvak case set for retrial

    The Second Circuit Court of Appeals has reversed the conviction of former Jefferies md Jesse Litvak (SCI 12 March 2014) and remanded the case for retrial. A Haynes and Boone client memo notes that in doing so, however, the Court of Appeals rejected the broker's broad argument that lies concerning ancillary transaction fees could never form the basis for a .......

    Job Swaps 16 December 2015

  • Liquid launch

    Agency RMBS favoured ahead of Fed lift-off

    A 25bp increase in the Fed funds target rate is widely expected to be announced later today. The pace of future interest rate hikes will impact the mortgage basis and the US agency market, which is strengthening investor appetite for liquid RMBS.

    As 2016 approaches, political and economic uncertainty is rising and demand for liquid investments is increasing, confirms Tradex .......

    News Analysis 16 December 2015

  • Euro secondary split

    Activity and price direction in the European securitisation secondary market is currently split in two key sectors.

    "In common with broader credit, overall volumes are low and liquidity is very thin," says one trader. "It's a result of both the time of year and the volatility in global markets."

    However, within securitisation secondary it continues to be a story of .......

    SCIWire 16 December 2015

  • Market supports benchmark change

    A majority of US ABS and CMBS market participants would support switching the pricing benchmark from the swaps curve to US Treasuries, according to a JPMorgan survey. Of the respondents, 61% favour a switch, while 28% advocate sticking with swaps.

    The survey was fairly representative of the ABS investor base, with money managers accounting for 47% of respondents (compared to .......

    News 15 December 2015

  • Ranieri recruits RMBS pro

    Ranieri Strategies has added two new partners, including Eric Kaplan to focus on structured finance. His duties will include working on housing, mortgage and RMBS reform endeavours with regulators and industry colleagues.

    Kaplan joins from Shellpoint Partners, where he was md and head of mortgage finance. In this role, he was primarily involved in the building of its non-agency RMBS and .......

    Job Swaps 15 December 2015
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