RMBS

  • MSR transfer expectations revised

    Addressing new regulations and internal and external controls remains the theme for US residential mortgage servicers in 2014, S&P suggests. The agency says that these companies have been focusing on compliance with Consumer Financial Protection Bureau (CFPB) rules that went into effect on 10 January, which aim to provide better disclosure to consumers of their mortgage loan obligations and to .......

    News Round-up 6 June 2014

  • Peripheral price recovery diverging

    House prices in the worst-hit peripheral eurozone mortgage markets are beginning to recover, but at different paces, Fitch says. The Irish market is now past its trough, the Portuguese market has stabilised but remains fragile and the Spanish market is likely to reach its low point at around the start of 2015. The Italian and Greek markets - which fell .......

    News Round-up 6 June 2014

  • Foreign borrower adjustment raised

    The performance of Italian and foreign mortgage borrowers in Italian RMBS transactions has diverged to the point where default risk is over three times higher for non-Italians, Fitch reports. This is reflected in the agency's most recent update to its Italian RMBS criteria.

    Analysis of eight transactions with higher-than-average exposure to foreign borrowers shows that their default rates are on .......

    News Round-up 6 June 2014

  • RMBS lawsuits return to state courts

    A US federal court has granted a motion by several states to remand back to state court 17 lawsuits against S&P. The suits concern ratings of RMBS where the states allege that the rating agency misled their citizens by not disclosing conflicts of interest.

    The cases had been moved to federal court and consolidated. However, a Lowenstein Sandler memo notes .......

    Job Swaps 6 June 2014

  • Manager adds RMBS team

    Alternative investment manager GAM has purchased specialist US RMBS business Singleterry Mansley Asset Management. Gary Singleterry and Tom Mansley, along with their investment team, are expected to join GAM this month.

    Singleterry Mansley Asset Management specialises in evaluating RMBS based on an analysis of macroeconomics, yield curves and underlying collateral structures. The acquisition expands GAM's capabilities with a distinct new .......

    Job Swaps 6 June 2014

  • Spanish ceiling raised

    S&P has raised its credit ratings on 62 tranches in 48 Spanish securitisations. The move follows the lifting of its long- and short-term sovereign ratings on the Kingdom of Spain to BBB/A-2 (outlook stable) from BBB-/A-3, in light of improving economic conditions in the country.

    Specifically, S&P has raised by a notch its ratings on: 34 tranches in 27 RMBS; .......

    News Round-up 6 June 2014

  • AHML changes 'credit neutral'

    The Russian Ministry of Finance's proposed changes to the Agency for Housing Mortgage Lending's (AHML) business profile would be credit neutral for outstanding RMBS transactions, according to Moody's. This assumes that the changes will not affect the roles performed by AHML in existing deals.

    A discontinuation of AHML's support of the mortgage market could reduce the number of mortgage securitisations .......

    News Round-up 6 June 2014

  • Purchased portfolio approach outlined

    Fitch says that alignment of interest, representations and warranties and the quality of portfolio information are the key areas of focus when analysing RMBS backed by purchased portfolios. Such transactions - including Thrones 2013-1, Rochester Financing No. 1 and Cartesian Residential Mortgages No. 1 - have emerged in the UK and the Netherlands over the last year.

    These portfolios can .......

    News Round-up 5 June 2014

  • German housing 'more liquid'

    The price discounts seen when residential property is sold following foreclosure in Germany has fallen in recent years, suggesting that the country's housing market has become more liquid, Fitch notes. This is reflected in the agency's recent update to its German RMBS criteria, in which the quick sale adjustment (QSA) assumption has been lowered to 40% from 43%, reflecting the .......

    News Round-up 5 June 2014

  • Data partnership to boost transparency

    The European DataWarehouse (ED) and 1010data have signed a partnership agreement under which the ED will make its data available on the 1010data platform. This will include over 30 million loans in 800 RMBS, CMBS, auto, consumer finance, leasing and credit card ABS deals.

    The partnership will help to distribute loan-level data more quickly and easily to investors, with 1010data's .......

    Job Swaps 5 June 2014

  • Remarketing feature to replace calls?

    Credit Foncier de France's €907m CFHL-1 2014 prime RMBS - which closed last month (see SCI's primary issuance database) - is noteworthy as the first public French RMBS since the financial crisis and because it was fully placed, with an innovative structure aimed at achieving significant risk transfer (SCI 1 May). In particular, the €376m class A2 tranche .......

    News 5 June 2014

  • Servicer analytics offered

    BlackBox Logic has released a new loan-level RMBS performance dataset, dubbed BBx Premium Non-Agency RMBS, which aims to allow users to more effectively analyse servicer behaviour in the private label security market. Key features of the offering include: estimated forbearance values and confidence levels; modification flags, amounts and percentages broken into capital, balance reduction and rate modification categories; and total .......

    News Round-up 4 June 2014

  • ResCap proceeds materialise

    An estimated third of affected RFC/GMAC RMBS deals saw settlement proceeds of US$17.65 per unit from the ResCap Liquidating Trust flow through to bondholders during the May remittance period. Some trusts expecting distributions are yet to receive proceeds, possibly due in part to the lack of clarity around how to handle subsequent recoveries, with trustees seeking advice on how to .......

    News Round-up 3 June 2014

  • Canadian private-label RMBS discussed

    A number of changes have been made to Canada's housing finance system over the last few years, but how they might influence mortgage lender financing strategies and borrower behaviour in the medium- to long-term remains unclear. Given the potential for a private-label RMBS market to emerge in the country, S&P notes that there are some unique features to consider when .......

    News Round-up 2 June 2014

  • SFR snapshot debuts

    Kroll Bond Rating Agency has published the inaugural issue of its Single-Family Rental Performance Snapshot, which aims to provide the market with a timely synopsis of the performance of securitised transactions in this emerging asset class. The move is part of an effort to provide more transparency around the performance of SFR transactions.

    This first report highlights the Invitation Homes .......

    News Round-up 2 June 2014

  • UK RMBS criteria updated

    Fitch has updated its criteria assumptions for assessing credit risk in UK residential mortgage loan pools. The updated assumptions are expected to have a limited impact on existing UK RMBS ratings and no effect on covered bond or SME CLO ratings. Potentially affected ratings will be reviewed within six months.

    Under the updated assumptions, Fitch applies the sustainable loan-to-value ratio .......

    News Round-up 2 June 2014

  • Aussie soft-bullet bonds gaining traction

    Recent exploration of a broader range of bullet-payment structures - including master trust structures - by issuers of Australian RMBS may pique the interest of investors, particularly offshore accounts, according to S&P. These structures offer issuers the potential to diversify their funding options, reduce swap and funding costs, and appeal to a wider investor base.

    S&P notes that there are .......

    News Round-up 30 May 2014

  • Portuguese ratings upgraded

    Moody's has upgraded to Baa1 six notes in five Portuguese ABS and eight notes in seven RMBS transactions. At the same time, the agency placed on review for upgrade three notes in three ABS and 42 notes in 22 RMBS. It has also placed on review direction uncertain one note in one RMBS deal.

    The rating actions follow the upgrade .......

    News Round-up 30 May 2014

  • Euro ABS policy options outlined

    The Bank of England and the ECB have published their joint discussion paper on the revitalisation of European securitisation, building on the report published last month (SCI 14 April). The paper discusses the reasons for the shortcomings and the opportunities for improvement of the ABS market, and is designed to stimulate discussion among stakeholders on the impediments identified and the .......

    News Round-up 30 May 2014

  • RMBS secondary supply jumps

    US non-agency RMBS BWIC volume picked up yesterday to reach around US$410m. A variety of bonds were out for the bid, including a handful of post-crisis non-performing loan tranches.

    Among the Alt-A names circulating during the session, a couple of bonds appeared for the first time in SCI's PriceABS data. The IMM 2007-A M1 tranche was talked at .......

    Market Reports 29 May 2014

  • Green Tree test failures eyed

    Moody's says in its latest ResiLandscape publication that Green Tree Servicing's failure in its first testing period to meet error rate thresholds for eight of 29 National Mortgage Settlement (NMS) servicing metrics is credit neutral for existing private-label RMBS. Nevertheless, the failure underscores the challenges non-bank servicers face in handling servicing acquisitions from larger banks, according to the agency.

    "The .......

    News Round-up 29 May 2014
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