RMBS

  • 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

  • NRPMT 2013-1 concentration scrutinised

    Fitch has released an unsolicited comment on NRP Mortgage Trust 2013-1, Nomura Corporate Funding Americas's new prime RMBS. The transaction has insufficient credit enhancement to achieve a triple-A rating, according to the agency.

    Fitch notes that the deal is backed by high quality originations from First Republic Bank (FRB), with the loans characterised by strong attributes. However, it has a .......

    News Round-up 11 July 2013

  • Appraisal exemptions extended

    The US Fed, the CFPB, the FDIC, the FHFA, the NCUA and the OCC have issued a proposed rule that would create exemptions from certain appraisal requirements for a subset of higher-priced mortgage loans. The proposed exemptions are intended to save borrowers time and money, as well as promote the safety and soundness of creditors.

    The proposed rule would exempt .......

    News Round-up 11 July 2013

  • Large list looks like GSE sell-off

    Non-agency US RMBS have largely held on to their year-to-date gains, despite the uncertainty caused by suggestions of Fed tapering, whereas Treasuries and agency RMBS have been more strongly affected. The relative outperformance could open the door for the GSEs to liquidate their legacy holdings while market levels remain elevated, with a large list due out today.

    Benchmark 10-year Treasury .......

    News 11 July 2013

  • Scope for litigation expanding?

    As litigation with respect to loan origination and other issues stemming from the financial crisis begins to ebb, a number of other areas are emerging as potential foci of investor scrutiny and regulatory compliance, according to NewOak Capital. The firm suggests that while some of these matters may appear to be solely the domain of consumer rights and protection, what .......

    News Round-up 10 July 2013

  • US RMBS makes welcome return

    The US RMBS secondary market sprang back to life yesterday after a string of quiet sessions before and after 4 July. SCI's PriceABS data shows around twice as many US RMBS tranches for Tuesday's session as it does for Monday.

    Supply was elevated across fixed, hybrid and subprime paper, with total volume estimated at US$930m. Tomorrow's session is .......

    Market Reports 10 July 2013

  • Freddie credit quality examined

    Kroll Bond Rating Agency has published an analysis of Freddie Mac's historical performance data that considers the potential performance of risk-sharing reference pools, given current origination trends. Credit performance of jumbo prime mortgages and Freddie Mac mortgages were found to be highly comparable when controlling for characteristics, such as FICO, LTV, balance and income/asset documentation.

    Freddie Mac has released a .......

    News Round-up 10 July 2013

  • UK servicer appoints operations chief

    Paul McMillan has joined mortgage servicer Acenden as coo. He reports to ceo Amany Attia and joins the company's operational management committee.

    McMillan joins from Ulster Bank and has held several roles in Ulster's parent bank, RBS. He will be based in High Wycombe and take responsibility for all the core operating teams in the business.

    .......

    Job Swaps 10 July 2013

  • Prepays set to move sharply lower

    Total FNCL pay-downs fell by 9% month-on-month in June to US$40.5bn at 24.6 CPR, according to Barclays Capital figures, as two fewer processing days and a decline in HARP activity overwhelmed a modest decline in driving rate. The focus is now expected to turn to the July/August reports, where a cumulative 100bp increase in US mortgage rates will likely force .......

    News 9 July 2013

  • Social housing arrears jump on 'bedroom tax'

    The UK National Housing Federation has published a report showing the impact of the government's controversial 'bedroom tax' on housing association arrears in Merseyside. First impressions suggest that the reduction in housing benefit is having a negative impact on housing association bonds, with the step-change in arrears as high as that seen in peripheral European RMBS between 2010 and 2011.

    News Round-up 8 July 2013

  • Dutch bank adds senior analyst

    Ruben van Leeuwen has joined Rabobank as senior ABS analyst. He joins from ABN Amro and will provide sell-side research with a focus on Dutch RMBS and covered bonds.

    At ABN Amro he was a fixed income strategist, portfolio manager and senior US economist. His various roles included covering Dutch and global credit markets and the development of fixed income .......

    Job Swaps 8 July 2013

  • Government-sponsored exits?

    GSE sell-offs raise questions about future

    Fannie Mae and Freddie Mac are in the process of moving around US$60bn in guaranteed mortgages over to private investors by the end of the year. That would provide some of the largest blocks of mortgage credit risk ever offered and open up a new stream of investable assets, but it also raises the question of what happens to the .......

    News Analysis 8 July 2013

  • No holiday for Euro RMBS

    Although secondary markets on either side of the Atlantic were quiet yesterday, some activity was observed in European RMBS. Seldom-seen Portuguese bonds were doing the rounds, as well as UK non-conforming paper.

    One of the Portuguese tranches captured in SCI's PriceABS data is ATLAM 1 A, which was talked at 88. It was previously covered at 90.31 on .......

    Market Reports 5 July 2013

  • Repeat Bankia tender under way

    Bankia has announced a tender offer for 17 senior Spanish RMBS tranches - across 12 2004-2007 vintage CAJAM, BCJAF and BCJAM transactions - in a repeat exercise of its previous offering for the same bonds last year (SCI 28 March 2012). The bank is offering to repurchase up to €500m of paper, half of what it had planned in its .......

    News Round-up 5 July 2013

  • Dawning realisation

    Forbearance losses stack up on transferred MSRs

    The large losses realised by Ocwen on loans previously serviced by Homeward Residential (AHM) came as a surprise to many investors (SCI 3 June). Further forbearance-related losses could yet be realised, not least as a result of recent mortgage servicing right transfers.

    Ocwen realised around US$1.5bn in losses on loans previously serviced by AHM in May, while further losses were .......

    News Analysis 5 July 2013

  • Europe reacts to unusual RMBS, ABS deals

    It has been an interesting couple of weeks in European RMBS and ABS, with noteworthy primary issuances in each sector grabbing investors' attention. A quiet end to this week is expected as the US marks Independence Day, although activity in the secondary markets has been relatively strong up to this point.

    "European RMBS spreads definitely widened out on the back .......

    Market Reports 4 July 2013

  • Mixed outlook for legacy RMBS

    US RMBS issued between 2005-2008 will continue to benefit from rising home prices, but many risks remain that will limit how much their performance improves, according to Moody's. The agency expects losses tied to loan servicing issues to significantly offset the benefits from borrowers being more incentivised to keep up their mortgage payments as they watch the values of their .......

    News Round-up 3 July 2013

  • Nationstar forbearance revisions expected

    Nationstar intends to revise the reporting of principal forbearance modifications, resulting in approximately US$1bn in losses for RMBS collateralised with loans it services, with the revision likely to occur in the July distribution. Fitch expects the impact to be concentrated in classes currently rated double-C or below and currently does not anticipate significant rating changes as a result of the .......

    News Round-up 3 July 2013

  • Asia managing partner poached

    Michelle Taylor and her team have joined Jones Day's banking & finance group in Hong Kong. She was formerly Asia managing partner and China office leader with Orrick. Her practice focuses on structured finance, real estate finance, debt capital markets, general banking and securitisation, where she has almost 20 years of experience.

    .......

    Job Swaps 2 July 2013

  • Subprime survives trading drop-off

    It was a quiet start to the holiday week in the US as the market moves into the third quarter. Non-agency RMBS BWIC volumes remain muted at US$90m, with dealer offering levels largely unchanged.

    Subprime RMBS supply held up better than other sectors yesterday. SCI's PriceABS data shows a number of subprime tranches for the session, although a .......

    Market Reports 2 July 2013

  • Strong performance for post-crisis GSE loans

    US mortgage loans recently acquired by Fannie Mae and Freddie Mac will outperform historical levels, according to Fitch. The agency has completed an analysis of historical data to help investors evaluate upcoming credit-sensitive securitisation proposals from the GSEs.

    With plans of engaging in credit risk transfer transactions in the works, the GSEs have publicly released for the first time historical .......

    News Round-up 2 July 2013
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