RMBS

  • 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

  • Tail risk action underway

    Moody's has placed the ratings of 1079 tranches from 299 US RMBS shifting interest/pro-rata transactions on review for downgrade. The collateral backing the tranches are jumbo, alt-A, option ARM, subprime, manufactured housing and scratch & dent residential mortgages.

    The ratings reflect the exposure of these bonds to tail risk due to the pro-rata pay nature of the transactions. Shifting interest .......

    News Round-up 20 June 2013

  • Aussie RMBS on review

    Moody's has published a secondary methodology describing its monitoring approach to assess tail risk in Australian RMBS. The methodology closes out the request for comment the agency released on the matter (SCI 29 April).

    Specifically, the approach evaluates tail risk in Australian RMBS that pay principal to the tranches on a pro-rata basis and assesses the sufficiency of the credit .......

    News Round-up 20 June 2013

  • MSR sale velocity examined

    Ocwen intends to purchase US$78bn in unpaid principal balance of OneWest Bank mortgage servicing rights and related servicing advances for US$2.53bn. The transaction is expected to close during the second half of this year.

    If completed, the purchase will increase Ocwen's servicing portfolio by 17% to US$547bn. Its portfolio has grown by 377% to US$469bn since 1Q12.

    Deutsche Bank securitised .......

    News 20 June 2013

  • FHFA complaint dismissed

    The New York Supreme Court has dismissed a FHFA complaint against UBS Real Estate Securities in connection with a US$1.1bn RMBS (MARM 2006-OA1), ruling that only the securities' trustee had the power to commence the lawsuit. The FHFA filed its action in April 2012, alleging that UBS refused to buy back defective loans in the pool of 3,187 mortgages that .......

    Job Swaps 20 June 2013

  • Industry preps for MBS Novation

    Financial firms are increasingly sourcing externally for post-trade processing functions for MBS to improve risk management and increase operational efficiencies, according to a new Broadridge Financial Solutions report. External sourcing is also helping firms better allocate technology resources and meet budget constraints in preparation for the implementation of MBS Novation.

    MBS Novation is the culmination of the Fixed Income Clearing .......

    News Round-up 19 June 2013

  • Moving on?

    The re-emergence of the European CLO market has many positiv...

    The evolving European securitisation market has seen several changes since the crisis, with many positive developments, particularly recently. However, certain issues still need to be resolved and - with the market improving - concern is growing that they may be forgotten about.

    Corporate trust service providers have experienced the market's lows as well as its highs and, while many recent .......

    News Analysis 18 June 2013

  • Spanish ruling may impact excess spread

    A recent Spanish Supreme Court ruling could cause lenders to stop applying floor clauses that set minimum interest rates in mortgage contracts, says Fitch. This would reduce excess spread in Spanish RMBS transactions.

    Interest rate floors have held up excess spread recently while interest rates have remained exceptionally low. If lenders cannot apply these clauses anymore then deals without a .......

    News Round-up 17 June 2013

  • Russian RMBS ratings reviewed

    Fitch has taken rating actions on three Russian RMBS deals: Red & Black Prime Russia MBS No.1, Russian Mortgage Backed Securities 2006-1 and Moscow Stars. Most tranches have been affirmed, but the class A notes of Moscow stars have been downgraded from triple-B minus to double-B.

    No defaults have been reported for Red & Black since January 2012. Cumulative defaults .......

    News Round-up 17 June 2013

  • Non-agency supply continues to rise

    US RMBS non-agency secondary supply was up to US$909m yesterday, with prime and Alt-A fixed rate paper leading the charge. Hybrid supply was moderate with subprime supply also up.

    SCI's PriceABS data shows supply continuing to build after a slow start to the week. Most of yesterday's supply was concentrated around 2004 to 2007-vintages.

    The WFMBS .......

    Market Reports 14 June 2013

  • RMBS settlement for former board members

    The US SEC has settled an enforcement proceeding against eight former directors of five Regions Morgan Keegan funds that were heavily invested in subprime RMBS. The proceeding began last year and alleged that the directors failed to satisfy their pricing responsibilities (SCI 11 December 2012).

    The directors are Kenneth Alderman, Jack Blair, Albert Johnson, James Stillman, Allen Morgan, Randall Pittman, .......

    Job Swaps 14 June 2013

  • Agency updates Dutch assumptions

    Fitch has updated its assumptions for analysing securities backed by Dutch residential mortgage loans. The criteria assumptions will be used for new and existing RMBS transactions as well as covered bond programmes, with market value decline assumptions also applying to SME CLOs secured by real estate.

    Ratings on existing RMBS are not expected to be affected by the update. The .......

    News Round-up 14 June 2013

  • Non-conforming default drivers examined

    High LTV ratios and County Court Judgments (CCJs) are the primary default drivers for UK non-conforming mortgages, Moody's says. Remortgaging is a bigger driver of default in the non-conforming sector than in the prime sector, while the opposite holds true for self-employment.

    Within the next 12 months, Moody's expects repossessions across UK non-conforming RMBS to stabilise at around 0.70%-0.90%, below .......

    News Round-up 13 June 2013

  • Euro default rate remains low

    Only 1.43% by original balance of European structured finance notes had defaulted by end-1Q13, according to S&P's latest quarterly transition study. The 12-month rolling downgrade rate for European structured finance fell to 21% at the end of the first quarter, while the 12-month rolling default rate remained relatively stable at 0.43%, given several new interest shortfalls and principal losses in .......

    News Round-up 13 June 2013

  • Emerging market

    Russian RMBS, ABS issuance gathering pace

    Russian RMBS issuance volume is expected to reach RUB50bn-RUB60bn this year, versus a total of RUB37bn in 2012, boosted by government purchase programmes. Demand is also emerging for consumer ABS, facilitated by the introduction of a new securitisation law and respective central bank standards that are expected to be finalised this autumn.

    The Russian RMBS market has been bolstered in .......

    News Analysis 13 June 2013
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