RMBS

  • 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

  • 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
×