RMBS

  • Mortgage firm recruits SF pro

    Stonegate Mortgage Corporation has further strengthened its structured finance team with the addition of Julianne Ilstrup. She becomes structured finance svp and will work with the firm's non-agency RMBS team to build Stonegate's capabilities to execute securitisations.

    Ilstrup will report to structured finance evp Eric Scholtz, who joined earlier this year (SCI 30 January). She joins from US Bank and .......

    Job Swaps 23 July 2013

  • TRACE adds specified, SBA securities

    FINRA has begun disseminating via TRACE information for specified pool transactions in agency pass-through MBS and SBA-backed securities. This represents approximately 3,500 trades, totalling US$18bn in par value, on an average daily basis.

    TRACE will disseminate transaction information, such as the time of the trade, price and volume. For security identification, in lieu of the CUSIP, FINRA will provide the .......

    News Round-up 23 July 2013

  • UK refinancing activity on the up?

    Lower interest rates on new loans in the past year mean that up to half of UK mortgage borrowers might now be both willing and able to refinance, up from about one-third a year ago. A new S&P report highlights how the incentive to remortgage fell sharply between 2008 and 2010, consistent with declining mortgage payment rates. However, more recently, .......

    News Round-up 22 July 2013

  • Eminent domain prohibition encouraged

    Legislation proposed by US Congressman John Campbell to prohibit Fannie Mae and Freddie Mac from purchasing, the FHA from insuring and the Department of Agriculture from guaranteeing, making or insuring a mortgage located in a municipality that has used the power of eminent domain to seize a residential mortgage has been welcomed by SIFMA. The association recommends that Congress quickly .......

    News Round-up 22 July 2013

  • Eurosail proposals put forward

    Fitch has affirmed 30 tranches of six Lehman currency swap transactions and placed five tranches of Eurosail-UK 2007-5NP on rating watch negative (RWN).

    Following the bankruptcy of Lehman Brothers and the subsequent termination of the respective currency swaps, the seven UK non-conforming RMBS transactions continue to be exposed to foreign currency movements. Given the movement of FX rates against the .......

    News Round-up 22 July 2013

  • Administrator role transferred

    Due to a potential conflict of interest relating to its role as securities administrator on Natixis 2007-HE2 and as an originator of loans sold into RMBS mortgage trusts, Wells Fargo is assigning its duties to pursue repurchase obligations to Computershare Trust Company. Under the deal's governing document, Computershare is identified as the separate securities administrator. Wells Fargo will remain the .......

    Job Swaps 22 July 2013

  • EC proposal 'credit positive'

    The European Council's proposal to give depositors preference over senior unsecured creditors would be credit positive for EMEA RMBS and ABS, says Moody's in a Credit Insight note. The proposal would increase the likelihood of undisrupted payments to depositors of a defaulting institution, increase potential recoveries on defaulting deposits and potentially mitigate set-off risk.

    Set-off risk could be further reduced .......

    News Round-up 19 July 2013

  • US home prices up as economies lag

    The disconnect between rising home prices and sluggish local economies is particularly wide for many US cities, according to Fitch's latest quarterly home price report. Broadly speaking the picture is stabilising, with real home prices rising nearly 6% last year, although several cities are bucking this trend.

    The rating agency note that home prices were up 17% for Detroit as .......

    News Round-up 19 July 2013

  • Cashflow waterfall template finalised

    The Reserve Bank of Australia has published its finalised cashflow waterfall reporting template for repo-eligible RMBS. The template is one of four new reporting templates that will need to be completed for RMBS to be considered for eligibility for repurchase agreement with the Reserve Bank from 31 December 2014.

    After extensive consultation, the RBA published in April final templates covering .......

    News Round-up 19 July 2013

  • RMBS 2.0 set to broaden?

    The clarification of Basel 3 risk weightings associated with US residential mortgages is expected to facilitate the broadening of the '2.0' non-agency RMBS market from a prime jumbo low-LTV sector to somewhere further down in credit, such as borderline Alt-A/prime borrowers with higher LTVs. It could also spur improved fundamental credit performance for legacy RMBS.

    Residential mortgage risk weightings under .......

    News Round-up 18 July 2013

  • Watt appointment could bring opportunity

    US Representative Mel Watt is strongly tipped to become the next FHFA director. His successful nomination could escalate RMBS policy concerns, although an over-reaction would present a strong buying opportunity.

    The Senate banking committee could confirm Watt's nomination as soon as today (18 July), which would be the first step towards a Senate vote. Bank of America Merrill Lynch ABS .......

    News 18 July 2013

  • Sovereign downgrade hits Italian deals

    S&P has lowered its credit ratings on 118 tranches in 91 Italian securitisations. The rating actions follow the agency's 9 July lowering of its unsolicited long-term sovereign credit rating on Italy to triple-B from triple-B plus, due to the effects of further weakening growth on the country's economic structure and resilience, and its impaired monetary transmission mechanism.

    Specifically, S&P has .......

    News Round-up 17 July 2013

  • Risk-sharing deal debuts

    The first in a series of hotly-anticipated Freddie Mac risk-sharing transactions (SCI 8 July) has been announced. Dubbed Structured Agency Credit Risk (STACR) series 2013-DN1, the securities are linked to the credit risk of a pool of recently-originated residential mortgage loans.

    The deal comprises two floating-rate tranches: US$200m 2.19-year M1 notes and US$200m 8.21-year M2 notes. Credit Suisse is structuring .......

    News Round-up 17 July 2013

  • REIT sales exacerbating MBS volatility?

    US agency mortgage REITs have had to deleverage by US$29bn in MBS since 31 March, according to Deutsche Bank estimates. Under stress scenarios where the yield curve steepens further and MBS spreads widen, MBS analysts at the bank suggest that an additional US$12bn-US$23bn of deleveraging might be necessary, putting significant further pressure on pricing.

    REITs have become an important part .......

    News 16 July 2013

  • RMBS dominates quiet session

    US secondary RMBS proved the most active sector in an unusually quiet session yesterday. ABS and CMBS BWIC volume totalled US$100m between them, while US RMBS topped US$500m.

    Non-agency paper accounted for more than half of that RMBS supply. However, as SCI's PriceABS data shows, several of those tranches did not trade.

    In the prime fixed space, the .......

    Market Reports 16 July 2013

  • Suit alleges ratings fraud

    Liquidators of two Bear Stearns funds have filed a lawsuit in the New York Supreme Court against McGraw Hill Financial, Moody's Corp and Fitch Group. They are seeking more than US$1bn for fraudulent investment ratings on RMBS and CDOs.

    The liquidators of Bear Stearns High-Grade Structured Credit Strategies (Overseas) and Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage (Overseas) allege .......

    Job Swaps 15 July 2013

  • Irish code of conduct 'credit positive'

    The Central Bank of Ireland on 1 July introduced a revised code of conduct for lenders, governing how they must deal with mortgage borrowers that are in arrears. Among other things, the revised rules remove the limit on how often lenders are allowed to contact delinquent borrowers, clarify when they can treat borrowers as uncooperative, and potentially reduce the time .......

    News Round-up 15 July 2013

  • NCUA RMBS action dismissed

    A federal court in Kansas has dismissed an action by the NCUA against Barclays Capital as time-barred. The lawsuit was filed last year, alleging US$555m of RMBS was misrepresented when it was sold to the US Central and Western Corporate credit unions.

    According to a Lowenstein Sandler memo, in dismissing the action as untimely the court relied on a recent .......

    Job Swaps 15 July 2013

  • RHG takeover bids eyed

    Australian lender Pepper has announced an unsolicited bid for RHG (formerly RAMS Home Loans), which is currently in wind-down. Meanwhile, RHG's board of directors has recommended that its shareholders accept a takeover proposal from former RHG director Trevor Loewensohn and Resimac.

    Moody's suggests in its latest Credit Outlook, that a takeover by either Resimac or Pepper would be credit positive for .......

    Job Swaps 12 July 2013

  • Statistical sampling examined

    The recent Flagstar (SCI 4 April) and Countrywide (SCI 7 May) rulings indicate an increased willingness of courts to allow statistical sampling as evidence of pool-wide breaches of MBS representations and warranties. However, the cases also open up many questions regarding statistics and evidence, according to NewOak Capital.

    For example, the firm notes that the applicability of such reasoning to .......

    News Round-up 12 July 2013

  • RBS novation confirmed

    Fitch confirms that there is no rating impact following the novation by RBS NV to RBS plc, ABN AMRO Bank and/or Bank Nederlandse Gemeenten with respect to the roles it covers across any European structured finance transaction. RBS plc notified the agency in May that, as part of the continuing transfers of business activities from RBS NV to RBS plc, .......

    News Round-up 11 July 2013
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