RMBS

  • 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

  • ResCap reorganisation approved

    The plan support agreement (PSA) entered into by Ally Financial, Residential Capital and ResCap's major creditors was approved last week by Judge Martin Glenn in the US Bankruptcy Court. The Chapter 11 plan provides broad releases for Ally from mortgage-related issues.

    Consistent with the terms of the PSA, ResCap paid Ally approximately US$1.13bn on 13 June to satisfy Ally's substantial .......

    Job Swaps 2 July 2013

  • REIT reliance on repo highlighted

    Fitch has published a report focusing on mortgage REITs that invest primarily in fixed rate agency MBS. Entitled 'Shadow Banking Mortgages: Agency mREITs and Repos', the study highlights the sector's reliance on repo borrowing and the potential ripple effects on mortgage markets if repo lenders were to tighten financing terms and availability.

    The report notes that fixed-rate agency mREIT sector .......

    News Round-up 2 July 2013

  • Corporate real estate vp added

    Lauren Hedvat has joined Goldman Sachs in New York as corporate real estate transactions vp, reporting to Michelle Gill. She was previously at Barclays Capital and before that worked as an analyst at Deutsche Bank and in the MBS banking group at Lehman Brothers.

    .......

    Job Swaps 2 July 2013

  • Patrimonio modifications eyed

    The loan modification programme that Patrimonio plans to implement in connection with eleven Mexican RMBS could have mixed results, according to Moody's, depending on the transaction and the assumptions used in the analysis. The agency says it will monitor the implementation and results of the programme as information becomes available.

    The final assessment of the impact will depend on the .......

    News Round-up 1 July 2013

  • Reconciliation transfer concerns raised

    Some US RMBS servicers are shifting custodial account reconciliation items to their internal corporate general ledger accounts, a practice that raises significant concerns about transparency, according to Moody's in its latest ResiLandscape publication. Although RMBS documentation does not prohibit such transfers, the agency says that the practice could mask significant operational issues that will ultimately require write-downs on securitisations.

    Because .......

    News Round-up 1 July 2013

  • Minimal negative equity seen in Aussie RMBS

    Prepayments and higher house prices have helped stop loan-to-value (LTV) ratios in the Australian mortgage market rising, Fitch reports. The agency's analysis of more than A$180bn of outstanding mortgages in 141 Australian RMBS deals indicates that just 0.5% of these mortgages are in negative equity, after taking into account revaluations due to property indexation.

    The index analysis shows that 70% .......

    News Round-up 28 June 2013

  • Servicer sustainability questioned

    The sale of over US$500bn in unpaid principal balance (UPB) of mortgage servicing rights (MSRs) to non-bank servicers from banks has been publicly reported, according to an analysis by Fitch. However, the agency expects the sustainability of growth for non-bank servicers in the longer term to be constrained by the declining size of the subprime market, reflecting the lack of .......

    News Round-up 28 June 2013

  • Casting nets

    Hunt for relative value puts range of options on the table

    European primary issuance may have been patchy this year, but liquidity in the secondary market has generally increased. The hunt for relative value has become all the more pressing as spreads have tightened.

    Regulatory initiatives such as Solvency II and CRD IV weigh on investors' minds, but until regulations come into force it is always possible that their provisions will .......

    News Analysis 28 June 2013

  • Shifting sands

    European securitisation market seeks stability

    The first half of 2013 has seen significant changes in the European ABS market's investor base, issuance patterns and regulatory landscape. The sector has gone through a number of cycles since the financial crisis, but now there are suggestions of a 'new normal' taking hold.

    The RMBS market is one in which the investor base has changed markedly. One asset-backed .......

    News Analysis 27 June 2013

  • Trading vet moves on

    Southwest Securities has appointed George Smith as svp in its taxable fixed income division in New York. In his new position, he will manage MBS, ABS and CMBS trading.

    Smith was previously md, head of MBS/ABS/rates trading and structured finance at Gleacher. Before that, he worked as md, head of MBS/ABS trading and structured finance at Cantor Fitzgerald. He has .......

    Job Swaps 26 June 2013

  • Secondary traders seek Spanish tranches

    There was a Spanish flavour to yesterday's European ABS secondary trading, with a number of auto bonds also showing up on BWICs. In addition, several Spanish RMBS tranches were available, as well as a long list of Granite bonds.

    SCI's PriceABS data shows a number of Spanish consumer ABS tranches that circulated in yesterday's session. Among them was .......

    Market Reports 26 June 2013

  • Mortgage settlement progress reported

    The monitor of the US$25bn National Mortgage Settlement last week released an update on the performance of the five large bank servicers that were party to the agreement - Bank of America, JPMorgan, Citi, Ally Financial and Wells Fargo - in complying with terms of the settlement. The report says that while the banks passed most of the servicing requirements .......

    News Round-up 26 June 2013

  • RMBS settlement agreement reached

    Assured Guaranty and Flagstar Bank have entered into a settlement agreement concerning Assured Guaranty's litigation against the bank for breaches of reps and warranties. The settlement follows a New York District Court ruling earlier this year in Assured Guaranty's favour (SCI 12 February).

    Flagstar will pay Assured Guaranty US$105m and also reimburse the company in full for all future claims .......

    Job Swaps 25 June 2013

  • Rep and warranty criteria updated

    Fitch has updated its criteria for analysing representations and warranties and enforcement mechanisms (RW&Es) in new issue US RMBS. As part of its rating criteria, the agency expects a full RW&E framework to be provided for in such transactions.

    A full RW&E framework contains all of the reps and warranties listed in Fitch's criteria report, has a provision for an .......

    News Round-up 25 June 2013

  • ABS fastest out of the blocks

    US ABS secondary volume has started the week strongly, helping to compensate for lower levels in non-agency RMBS. Supply on Monday was elevated across the credit card, auto loan and student loan sectors.

    Around US$350m of ABS bonds circulated on BWICs yesterday, with auto, card and student paper dominating the session. A mix of various vintage senior and subordinate tranches .......

    Market Reports 25 June 2013

  • Mortgage market reforms recommended

    The Mortgage Bankers Association (MBA) has released a concept paper outlining steps to ensure mortgage lenders have the confidence to lend to the full range of qualified borrowers. Aligning the GSEs' underwriting standards and creating clear standards for representations and warranties is essential for a smooth transition to a sustainable secondary market operating with an explicit, limited government guarantee, the .......

    News Round-up 25 June 2013

  • Eminent domain move slammed

    The City Council of North Las Vegas has entered into an advisory agreement with Mortgage Resolution Partners, the firm advancing the use of eminent domain to seize performing mortgages for modification. SIFMA, the Association of Mortgage Investors, the Greater Las Vegas Association of Realtors and the Nevada Bankers Association have responded by issuing a statement in which they express their .......

    News Round-up 21 June 2013

  • SAFT 2013-1 origination scrutinised

    Moody's has assessed New Penn Financial as a below average originator of prime jumbo residential mortgage loans. The move comes at the same time as the lender is in the market with its debut RMBS - the US$261.58m Shellpoint Asset Funding Trust 2013-1.

    Moody's says its overall below average assessment of New Penn Financial is based on the lender's originator .......

    News Round-up 21 June 2013

  • German insolvency amendment 'credit negative'

    The German parliament last month passed an act amending the personal insolvency regime, shortening to three years from six the period after which a borrower under personal insolvency can discharge his remaining unsecured debt if he has repaid 35% of the total. The law will be effective from 1 July 2014.

    Moody's notes in its latest Credit Insight publication that .......

    News Round-up 20 June 2013

  • UK regional divergence continues

    UK mortgage arrears and negative equity continue to diverge regionally, according to S&P. The agency estimates that 3.9% of mortgage balances were in arrears in 1Q13 - only slightly higher than the 3.8% figure in 4Q11, when it conducted its previous study. But the proportion of arrears in northern regions remains about one percentage point higher than in the south.

    News Round-up 20 June 2013

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