RMBS

  • ULC proposal criticised

    The American Securitization Forum has submitted a comment letter in response to the Uniform Law Commission's (ULC) draft residential real estate mortgage foreclosure process and protections. The ULC is proposing to reverse the holder in due course doctrine, which currently provides that a mortgage assignee that paid value for a loan in good faith and that lacked notice of certain .......

    News Round-up 3 June 2013

  • Bluestone clerical error rectified

    The principal balance of mortgages assigned at closing for the Bluestone 2005, Bluestone 2006 and Bluestone 2007 RMBS was overstated by the unintentional inclusion of fees and interest arrears following a clerical error. This has resulted in under-collateralisation of the notes by £208,821, £1.33m and £4.36m respectively.

    As a form of rectification, the seller Redstone has repaid these balances to .......

    News Round-up 31 May 2013

  • HAMP gets two-year extension

    The Making Home Affordable Program has been extended from 31 December 2013 to 31 December 2015. The new deadline was determined in coordination with the FHFA to align with extended deadlines for the Home Affordable Refinance Program (HARP) and the Streamlined Modification Initiative for homeowners with loans owned or guaranteed by the GSEs.

    Since its launch in March 2009, about .......

    News Round-up 31 May 2013

  • FHFA suit settled

    The FHFA and Citi have reached a settlement in connection with a suit FHFA filed on 2 September 2011, alleging that the defendants misled Fannie Mae and Freddie Mac into buying US$3.5bn in RMBS. In a stipulation filed with the court, the parties stated that they "have reached a settlement disposing of all claims asserted" in the action. The terms .......

    Job Swaps 31 May 2013

  • Euro ABS mandates minted

    Cervus Capital Partners has launched two European ABS mandates: European Amortising ABS Mandate I and II. The first mandate was set up for high net-worth individuals and family offices; the second was specifically set up for a Dutch institutional investor.

    Both mandates have the same investment guidelines and target mid/high-single digit returns in short-dated European ABS. The focus will be .......

    Job Swaps 31 May 2013

  • Highly anticipated RMBS list arrives

    A US$8.5bn 256 line-item BWIC of non-agency bonds hit the US RMBS market yesterday. It was sold in five groups, with Credit Suisse, Goldman Sachs and Bank of America each understood to have bought a batch and Morgan Stanley snapping up two.

    The BWIC is the largest all-or-none list to trade since the Fed's Maiden Lane sales last year (SCI .......

    Market Reports 31 May 2013

  • Buy-back targets mezz bonds

    UCI has launched a fixed price tender offer for 11 Spanish RMBS tranches from across the UCI 10 to UCI 17 deals. The bank is offering to purchase up to €300m of the €3.4bn currently outstanding across the bonds.

    This is the seventh tender for UCI bonds, with the first being in August 2009 and the last in November 2010. .......

    News Round-up 30 May 2013

  • New name for investment firm

    UCM Partners is rebranding as Semper Capital Management, effective from 1 June. The firm's senior management, investment personnel and ownership remain unchanged.

    The firm specialises in RMBS, CMBS and ABS, offering investors access to a range of securitised debt investment platforms, from private absolute return to public index-based strategies.

    .......

    Job Swaps 30 May 2013

  • Short sales trump loan mods

    The remedy of choice for underperforming residential mortgage loans has undergone a sea-change of sorts over the last several months for US RMBS servicers, according to Fitch's latest quarterly index for the sector. Once the norm, loan modifications have slowed notably, while short sales have become the proverbial order of the day.

    For non-agency loans, short sales by bank servicers .......

    News Round-up 29 May 2013

  • Better RMBS data provides Irish guidance

    The European DataWarehouse (ED) is benefitting sectors that had previously suffered from a paucity of information, such as peripheral RMBS. One such jurisdiction is Ireland, where greater access to data is set to facilitate more rigorous fundamental analysis and aid in the trading of bonds.

    With late-stage 90-day plus arrears averaging 17.5% for prime Irish RMBS, the sector remains particularly .......

    News 29 May 2013

  • MILAN methodology updated

    Moody's has updated its methodology for rating RMBS using the MILAN framework, including the introduction of a new approach for the analysis of mixed-pool mortgage loan portfolios. At the same time, the agency has updated its related approach to originator assessments.

    In EMEA Moody's uses a unified approach when analysing a mixed-pool portfolio (a portfolio comprising two sub-pools of mortgage .......

    News Round-up 29 May 2013

  • Home price warning issued

    Fitch believes the recent US home price gains recorded in several residential markets are outpacing improvements in fundamentals and could stall or possibly reverse. Many of these areas are in California, which has seen price increases of 13% over the last year.

    In many markets, fundamentals are improving as unemployment rates continue declining, while low prices and low interest rates .......

    News Round-up 29 May 2013

  • Self-employed IO loan concentration examined

    Moody's expects self-employed borrowers' exposure to current UK economic weakness not to have a significant impact on the creditworthiness of UK RMBS, since over three-quarters of RMBS loans are made to employed borrowers. But, in addition to their exposure to current UK economic weakness, self-employed borrowers remain particularly at risk from a potential rise in interest rates because of the .......

    News Round-up 29 May 2013

  • Dutch RMBS fundamentals eyed

    Statistics Netherlands (CBS) has reported a house price decline in April of 1.4% month-on-month and 7.6% year-on-year for the country. Dutch house prices now stand at a 10-year low and 19% below their 2008 peak, with the rate of price declines continuing to accelerate. Combined with the current 17-year high in the unemployment rate, S&P says this suggests that the .......

    News Round-up 29 May 2013

  • Weakening enforcement highlighted

    The news that a delinquent borrower in a repossessed property belonging to a Spanish RMBS (Mixto III) will be allowed to remain in their home under recent Andalucian legislation highlights the risk of weakening mortgage enforcement in Spain, Fitch says. The Autonomous Community of Andalucia last month approved the legislation (Decreto ley 6/2013), which gives it power to control the .......

    News Round-up 29 May 2013

  • Euro mezz ABS takes a breather

    The European ABS sector showed a muted response to the volatility seen in equity markets last week. Granite triple-B prices were down slightly on Thursday and Friday.

    "After what seems like a very long period characterised by strong unflinching demand for bonds, very little supply and consequently steadily increasing prices, a slight pause in this dynamic has been notable," ECM .......

    News Round-up 28 May 2013

  • APAC ratings remain stable

    Fitch reports that Asia Pacific (APAC) structured finance (SF) tranches remained largely stable in 2012, with over 95% of tranches maintaining their ratings or being paid in full (PIF), compared with 89% in 2011. As in previous years, most downgrades (92.8%) were made to Japanese transactions, three-quarters of which were CMBS.

    Ratings from two credit-linked notes referencing a Japanese government .......

    News Round-up 28 May 2013

  • Origination acquisition eyed

    Ellington Management Group has appointed Steven Abreu to a new role as head of mortgage originations. He will lead the firm's efforts to acquire one or more mortgage originators and oversee both agency and non-agency mortgage originations, including refinancings, purchase loans and retention of servicing rights.

    Abreu was previously president of GMAC Mortgage from 2009. Prior to that, he was .......

    Job Swaps 28 May 2013

  • Property price indexing introduced

    Fitch is set to introduce property price indexing into its analysis of Australian RMBS in the near future. The aim is to create a more accurate picture for investors of the value of security backing the underlying loans, as well as allow Fitch a more systematic assessment of regional variations in house price changes when it assesses recoveries.

    Fitch notes .......

    News Round-up 28 May 2013

  • Statute of limitations analysis recommended

    Two recent New York State Supreme Court decisions regarding claims arising from US RMBS representations and warranties (R&Ws) breaches significantly differed in their analyses of the applicable statute of limitations (SOL), S&P reports. The agency consequently believes that investors should consider both cases when reviewing such transactions.

    The first decision was when the defendant's motion was granted on 10 May .......

    News Round-up 24 May 2013

  • Caution emerging in secondary RMBS?

    Further details have emerged regarding the US$8.7bn non-agency RMBS BWIC scheduled to trade on 28 May (SCI 23 May). The list is composed of mostly adjustable-rate collateral, with over half being Alt-A paper. Bidding will be conducted on an all-or-none basis.

    Interactive Data notes that although the list comprises similar collateral to the list put out by Freddie Mac on .......

    News Round-up 24 May 2013
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