RMBS

  • 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

  • BPO assessments examined

    Moody's notes in its latest ResiLandscape publication that broker price opinions (BPOs) can provide fair assessments of home values for single-family rental (SFR) securitisations, if BPO providers follow detailed and thorough processes and procedures. An analysis undertaken by the agency of data from two BPO providers showed that, on average and in the current environment, BPO values approximated the eventual .......

    News Round-up 28 May 2014

  • Pre-crisis losses decline

    The turnaround of the US housing market has led to a sizeable decline in pre-crisis global securitisation losses, Fitch reports. At the same time, loss expectations for pre-crisis EMEA securitisations have remained constant.

    Total losses on US bonds issued between 2000 and 2008 fell to 5% from the 5.4% recorded in Fitch's study last year. Total losses include both realised .......

    News Round-up 28 May 2014

  • RMBS trading vet recruited

    Prudential Fixed Income has hired John Vibert as md, structured products. Vibert will work closely with Richard Rogers to co-lead the firm's structured finance team. He was most recently a lead portfolio manager for BlackRock's mortgage credit portfolios and lead trader for its non-agency RMBS trading team.

    Before joining BlackRock, Vibert was an md at Credit Suisse, where he was .......

    Job Swaps 28 May 2014

  • DSB compensation to rise?

    The Amsterdam court has passed an interim ruling on the framework agreement that sets out the compensation process on due care claims of clients of the now bankrupt DSB Bank (SCI passim). The court believes that the framework is broadly adequate, but raised concerns about some aspects that apply to certain types of claims and suggested that improvements are made.

    News Round-up 27 May 2014

  • Bidding criteria switched

    The seller of yesterday's US$1.1bn non-agency RMBS BWIC (SCI 20 May) switched on the morning of the sale from only soliciting all-or-none bids for the entire portfolio to entertaining single security bids. Given that nearly one-quarter of the list comprises Re-REMIC bonds that tend to be less liquid, Interactive Data suggests that the seller may have feared poor execution and .......

    News Round-up 22 May 2014

  • SFR criteria released

    Kroll Bond Ratings has published its single-family rental (SFR) securitisation methodology. Given the hybrid nature of the underlying collateral, KBRA will employ elements from both its CMBS and RMBS methodologies to analyse SFR transactions.

    When considering the probability of default of a SFR loan, KBRA determines the estimate of sustainable net cashflow, known as KBRA Net Cash Flow (KNCF). KNCF .......

    News Round-up 22 May 2014

  • MBIA upgrades lift SF ratings

    Moody's has upgraded the ratings of 199 structured finance securities wrapped by MBIA Insurance Corp and two structured finance securities wrapped by MBIA UK Insurance. The action is driven by Moody's upgrade of the insurance financial strength (IFS) ratings of MBIA Corp to B2 (from B3) and MBIA UK to Ba2 (from B1).

    The agency has also upgraded the IFS .......

    News Round-up 22 May 2014

  • GSE buyback expected

    Freddie Mac is set to repurchase certain adjustable-rate mortgage loans on 16 June. The repurchase is due to erroneous loan-level data where the interest-only period on the loan doesn't match that of the security.

    The resulting prepayments will be reflected in the July remittance report. For the 58 affected pools, Freddie Mac expects to repurchase US$29m out of US$150m unpaid .......

    News Round-up 21 May 2014

  • RMBS gears up for busy week

    The US non-agency RMBS secondary market made a solid start to the week as BWIC volume approached US$450m yesterday. Activity has been boosted by a US$1.1bn bid-list that is scheduled to trade tomorrow.

    Wednesday's list is said to largely comprise adjustable rate and subprime bonds from the 2005-2007 vintages. The majority of bonds circulating yesterday, meanwhile, came from Alt-A and .......

    Market Reports 20 May 2014

  • Belgian affordability examined

    Belgian residential mortgage loans with higher LTVs will be more likely to fall into arrears than those with lower LTVs over the next 12 months, Moody's says. Moreover, because lenders are tightening their mandate acceptance criteria and granting mandate loans to borrowers with better credit quality, mortgage loans are more likely to default than mandate loans.

    "While arrears across Belgian .......

    News Round-up 20 May 2014

  • Irish sovereign ceiling lifted

    Moody's has raised the maximum achievable rating for Irish structured finance transactions to Aa3 from A2, following its upgrade of Ireland's government bond rating to Baa1 from Baa3 (stable outlook). Concurrently, the agency raised the country's local and foreign currency bond and deposit ceilings to Aa3 from A2.

    An improved outlook for Ireland's medium-term public debt levels, the reduction in .......

    News Round-up 20 May 2014

  • Mortgage services provider adds review chief

    LenderLive Network has hired Mark Hughes as review services svp, leading the company's due diligence and loan review business. It is a new position at the company which will entail growing LenderLive's position as a third-party review firm and expanding its offerings.

    Hughes will be based in New York and report to ceo Rick Seehausen. He was previously at CoreLogic .......

    Job Swaps 20 May 2014

  • Whinstone tender announced

    Northern Rock Asset Management (NRAM) has launched a tender offer for six tranches of its Whinstone Capital Management 1 and 2 synthetic RMBS transactions via a modified Dutch auction. The firm says it is undertaking the offer in order to reduce its funding costs.

    The notes included in the offer comprise Whinstone 1 class B1 notes (with a principal amount outstanding .......

    News Round-up 19 May 2014

  • Aussie indexed LVRs decline

    Moody's says that rising house prices reduced the indexed weighted-average loan-to-value ratio (LVR) in Australian RMBS to below 50% in 2013. The indexed LVRs in individual states ranged from 39% in the Northern Territory to 54% in Tasmania.

    "Although the current weighted-average LVR in the Australian RMBS portfolios is 57%, when taking the house price increases into account the indexed .......

    News Round-up 16 May 2014

  • Advancing discrepancies examined

    Bondholder payments were delayed in a number of recent transactions due to differences in approaches between bank and non-bank US RMBS servicers, Fitch reports. In particular, over recent months, RMBS collateralised with mortgages transferred from Bank of America to Nationstar Mortgage have incurred bondholder payment disruptions (SCI passim).

    Fitch notes that the impact of the difference in missed payment advancing .......

    News Round-up 16 May 2014

  • GSE buyback risk diminished

    US residential mortgage lenders will benefit from a reduced risk of loan buybacks, thanks to an easing of borrower performance measures mandated by the FHFA, according to Fitch. The agency says that less uncertainty around repurchase risk should increase mortgage lending to creditworthy borrowers, which will support the housing market recovery. The FHFA announced the measures this week as part .......

    News Round-up 16 May 2014

  • Johnson-Crapo bill passes Committee

    The US Senate Committee on Banking, Housing and Urban Affairs has passed S.1217, the Housing Finance Reform and Taxpayer Protection Act, by a vote of 13-9. Two manager's amendments, no. 2 and no. 98, passed the Committee to amend the bill. But an amendment that would prohibit federal entities from purchasing or insuring mortgage loans in municipalities that use eminent .......

    News Round-up 16 May 2014

  • Turning tide?

    ECB attitude shift provides securitisation lift

    The re-emergence of the European securitisation market has been helped by initiatives like the European DataWarehouse (SCI passim). This process could be set for greater impetus from the ECB, particularly if a high quality securitisation (HQS) label is introduced.

    The build-out of the European DataWarehouse (ED) has been a key development in the market post-financial crisis. Despite some initial scepticism, .......

    News Analysis 16 May 2014

  • Aussie repayment rates examined

    Fitch has introduced new indices to monitor Australian repayment rates in securitised prime mortgages. The Australian mortgage market has been characterised by higher prepayment rates compared to other countries, which in turn have led to fast amortisation of Australian prime RMBS transactions.

    Over the past decade, Australian prepayment rates have ranged from 15%-25%, according to Fitch. Overseas, this rate has .......

    News Round-up 15 May 2014

  • Hedge fund AUM hits highs

    Investors allocated heavily into hedge funds in April, the third consecutive month of elevated inflows, according to eVestment. The US$17.9bn of new capital added offset the slight asset-weighted performance declines and pushed the industry's AUM to an all-time high of US$2.94trn.

    Credit fund flows were positive but near flat for the second consecutive month, albeit AUM remains at an all-time .......

    News Round-up 15 May 2014
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