RMBS

  • 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

  • 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
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