RMBS

  • Spanish interest floor ruling 'credit neutral'

    BBVA, Cajamar and NCG Banco have eliminated the interest floor clauses in more than 500,000 Spanish mortgages, after they were declared as unfair in a recent Tribunal Supremo ruling. This change - which will lead to a decrease in interest collections, but will not affect cashflows - is credit neutral for the interest-hedged deals originated by the banks, according to .......

    News Round-up 24 July 2013

  • Negative outlook for Ocwen ratings

    Fitch has assigned RSS3 and RPS3 (negative outlook) residential servicer ratings to Ocwen Loan Servicing across the subprime, prime, alt-A, HELOC and closed-end second lien categories. The agency says that the rating actions are based on Ocwen's highly integrated technology environment and robust investor and borrower websites.

    Ocwen is currently operating two separate servicing platforms: its legacy servicing operation utilising .......

    News Round-up 24 July 2013

  • No Monday blues for US RMBS

    US RMBS secondary supply started the week strongly, with BWIC volume on Monday of US$387 for agency RMBS and US$410m for non-agency. SCI's PriceABS data captured many non-agency names that were out for the bid in the week's first session, including a good number of subprime bonds which traded.

    A spike in subprime supply was a significant .......

    Market Reports 23 July 2013

  • RFC issued on Russian MBS

    Moody's has published a request for comment on the impact of legislative amendments on Russian onshore MBS. In particular, the amendments - which came into effect in January 2013 - have reduced the risk of issuer liquidation upon recording a negative asset ratio by prohibiting voluntary issuer self-liquidation.

    Prior to these amendments, Moody's assumed that an issuer with a negative .......

    News Round-up 23 July 2013

  • UBS settles FHFA claim

    UBS has reached an agreement in principle with the FHFA to settle claims relating to US RMBS offerings between 2004 and 2007 (SCI 28 July 2011). The case is one of a group of cases related to RMBS offerings filed by the FHFA against 18 financial institutions.

    The settlement, which is subject to documentation and final approvals by the parties, .......

    Job Swaps 23 July 2013

  • Non-agency roll rates hit post-crisis lows

    US mortgage performance continues to improve as the rate of new delinquencies across all sectors trend down, according to Fitch's latest mortgage market index results. In aggregate, non-agency roll rates from current to delinquent have improved to their lowest levels since early 2007.

    Fitch's delinquency (DQ) roll rate index declined to 2% for 2Q13, down from 2.4% in 1Q13 and .......

    News Round-up 23 July 2013

  • 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
×