RMBS

  • Clydesdale redress 'credit neutral'

    The UK Financial Conduct Authority's recent judgment against Clydesdale Bank is anticipated to be credit neutral for its post-crisis Lanark Master Issuer and Lannraig Master Issuer RMBS. A payment system error in place since 2005 led 22,000 borrowers to underpay on their loans, some of which are securitised in Lanark 2011-1 and 2012-1, as well as Lannraig 2012-1, 2012-2 and .......

    News Round-up 7 October 2013

  • Fannie debuts risk transfer deal

    Fannie Mae is in the market with its inaugural risk transfer transaction. Dubbed Connecticut Avenue Securities Series 2013-C01, the US$675m RMBS references a pool of 117,745 high-quality prime mortgage loans acquired by the GSE during 3Q12.

    Arranged by Bank of America Merrill Lynch and Credit Suisse, the deal comprises two tranches: US$337.5m class M1 floating-rate 10-year hard bullet notes, rated .......

    News Round-up 7 October 2013

  • Servicing standards lawsuit filed

    New York Attorney General Eric Schneiderman has filed a lawsuit against Wells Fargo so that the bank can be compelled to honour its commitments under the 2012 National Mortgage Settlement. Wells Fargo is accused of multiple violations of the servicing standards outlined in the settlement.

    Violations of the timeline servicing standards increase the likelihood of distressed homeowners losing their homes. .......

    Job Swaps 7 October 2013

  • London legal partners appointed

    Mayer Brown has added two securitisation partners to its banking and finance group in London. Richard Todd and David O'Connor join from Berwin Leighton Paisner and Allen & Overy, respectively.

    Todd has worked at Mayer Brown before, as well as at Lloyds, JPMorgan and VTB Bank. He specialises in trade receivables and auto loan ABS as well as RMBS.

    O'Connor's .......

    Job Swaps 7 October 2013

  • Extraordinary expenses impact ratings

    How US RMBS transactions account for extraordinary expenses has implications for both potential credit loss and potential rating volatility, reports Kroll Bond Rating Agency. Extraordinary expenses can fluctuate considerably, making them hard to anticipate.

    One way of treating extraordinary expenses is as amounts paid by the trust fund for the benefit of all noteholders which therefore should be borne by .......

    News Round-up 4 October 2013

  • RMBS BWIC supply picks back up

    US non-agency RMBS secondary market activity was solid yesterday, with US$556m of bonds offered on bid-lists. Non-agency BWIC volume was up considerably from Tuesday's levels, with subprime paper leading the charge, although agency supply was light.

    The ABFC 2007-WMC1 A2B tranche was one such subprime name out for the bid in the session. It was talked yesterday in the low/mid-60s, .......

    Market Reports 3 October 2013

  • Colorado storms affect RMBS bonds

    Severe storms, flooding, landslides and mudslides in nine Colorado counties adjudged by the Federal Emergency Management Administration (FEMA) as eligible for Federal assistance have affected 1.08% of the entire US non-agency RMBS universe, reports Morningstar. More than 75% of the affected houses were securitised between 2005 and 2007.

    The overall exposure of non-agency RMBS properties to the event is relatively .......

    News Round-up 3 October 2013

  • RBA updates securitisation reporting templates

    The Reserve Bank of Australia (RBA) has released for consultation draft reporting templates for CMBS and ABS to be eligible for repo. The Australian Securitisation Forum notes that the new information requirements reflect the RBA's desire for more comprehensive information about the securities.

    The templates require transaction-level and security-level templates for CMBS and ABS and are comparable to those finalised .......

    News Round-up 3 October 2013

  • MILAN introduced in Russia

    As a result of legislative amendments which came into effect this year, Moody's has updated its approach to modelling Russian RMBS and will now use the MILAN framework. The amendments are intended to raise mortgage agent protection to the level of bankruptcy remoteness traditionally expected from an SPV.

    The legislation stipulates that an SPV must be incorporated as a joint .......

    News Round-up 2 October 2013

  • Court allows RMBS claims to proceed

    A Federal Court in New York has ruled that the FDIC can proceed with its claims against several major banks in connection with US$388m of RMBS purchased by the now-defunct Colonial Bank (SCI 15 August 2012).

    The defendants include JPMorgan, Citigroup, Ally Securities, First Horizon, Credit Suisse, Deutsche Bank, HSBC, Merrill Lynch, RBS and Wells Fargo. The FDIC alleges the .......

    Job Swaps 2 October 2013

  • Used condos not negative for Japan RMBS

    The rise in the number of used condominiums for Japanese investment-purpose condo loan RMBS is credit positive, says Moody's. They have higher DSCRs and are in better locations than new condos, thereby providing better loan affordability and generating steady cash inflows for obligors.

    Used condos now account for between 30% and 40% of the total rated condo loan RMBS. They .......

    News Round-up 1 October 2013

  • Structured pro takes Freddie role

    James Mackey is joining Freddie Mac as evp and cfo, replacing the retiring Ross Kari. He joins next month and will report to ceo Donald Layton.

    Mackey was most recently evp and cfo at Ally Financial. Before that he was at Bank of America, where he held various roles including md within the global structured products group.

    .......

    Job Swaps 1 October 2013

  • Cantor enlists agency specialist

    Christopher Obara has joined Cantor Fitzgerald in New York as a director. He was previously at Pierpont Securities, Ally Securities, Nomura and UBS and focuses on agency RMBS trading and structuring.

    .......

    Job Swaps 1 October 2013

  • Modelling pro joins portfolio management team

    Deer Park Road Corp has appointed Rick Fontana as associate portfolio manager. He will focus on helping manage the recently-formed Burgess Creek Fund (SCI 3 April), which focuses on deeply discounted RMBS and ABS.

    Fontana will report directly to portfolio manager Scott Burg. He has previously worked at TD Securities in New York and has strong experience in modelling and .......

    Job Swaps 1 October 2013

  • Spanish NPL warning issued

    The rise in Spanish non-performing loans (NPLs) recently announced by the Bank of Spain is likely to continue as banks reclassify some refinanced loans and reduce the support they have provided to their structured finance transactions, Fitch says. If the rate of increase continues, the agency says it could trigger a review of its probability of default assumptions for individual .......

    News Round-up 27 September 2013

  • Fraud suit to proceed

    The US District Court for the Southern District of New York has allowed the US Department of Justice to proceed with its civil mortgage fraud lawsuit against Wells Fargo in connection with the bank's participation in the FHA's Direct Endorsement Lender Program. DOJ filed its complaint in October 2012, accusing Wells Fargo of falsely certifying to the US Department of .......

    Job Swaps 27 September 2013

  • Euro ABS, RMBS markets 'calm'

    The European ABS and RMBS markets continue to exhibit healthy if unspectacular levels of activity. Primary issuance continues, while secondary market supply has picked up since the summer slow-down.

    One trader reports that this past week has been "calm" in the absence of strong positive or negative drivers. Secondary market activity has been steady.

    "We have certainly seen a bit .......

    Market Reports 27 September 2013

  • Master stroke?

    Aussie regulator considers master trust merits

    Speculation is growing that the Australian Prudential Regulation Authority (APRA) might allow securitisation through master trusts. Such a move could transform the Australian RMBS market and open up new asset classes.

    While common in other markets, master trusts have not taken off in Australia before now. One investor believes that it is post-crisis comparisons with those other markets which are .......

    News Analysis 27 September 2013

  • SFIG continues to build

    SFIG has hired Sonny Abbasi as director for RMBS policy issues and Sairah Burki as director for ABS policy issues. They will both report to executive director Richard Johns.

    Abbasi will focus on GSE reform and efforts to support a return of private capital to the RMBS market. He was previously director of MBS policy at Fannie Mae and has .......

    Job Swaps 26 September 2013

  • Further delay for Countrywide pay-out

    The September session of the US$8.5bn Countrywide settlement hearing has ended, without a conclusion. The objectors' one remaining witness - Georgetown law professor Adam Levitin - is now scheduled to provide his testimony on 14-15 November, after which both sides will offer their closing arguments.

    Closing arguments are expected to continue for three days, suggesting that the trial could be .......

    News Round-up 26 September 2013

  • US supply sees sharp up-tick

    US secondary market activity has picked up significantly across the board, with SCI's PriceABS archive listing over 700 line items for yesterday's session. Bid-lists in each of the ABS, CMBS and RMBS sectors boosted supply.

    While a wide variety of collateral types were out for the bid in the ABS sector, a sizeable list of student loan floaters .......

    Market Reports 25 September 2013
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