RMBS

  • Post-crisis RMBS prepays examined

    Prime mortgage borrowers in US RMBS pools issued since the start of 2010 are still prepaying at rapid rates, reflecting the refinance incentives driven by low mortgage rates, Fitch says. Historically, high refinance activity has left poorer quality borrowers in mortgage pools, which in turn has increased performance volatility. For recent RMBS, however, the credit implications have been modest to .......

    News Round-up 12 March 2013

  • Canadian mortgage RFC issued

    Moody's has issued a request for comment on a proposal affecting how it analyses the credit risk of Canadian non-insured mortgage pools. The agency plans to use the proposed approach in conjunction with its existing methodologies to rate covered bond and ABCP transactions backed by such pools.

    The proposal centres on Moody's residential mortgage collateral analysis model MILAN, which is .......

    News Round-up 12 March 2013

  • Direction change for German house prices

    The rise in German house prices in 2011-2012 was less pronounced in the wealthiest parts of the country, reports Fitch. This is a deviation from the long-term trend which has seen prices fall fastest in the wealthiest regions, suggesting that demand may be moving from less affordable houses to more affordable apartments.

    Fitch calculates that house prices in the wealthiest .......

    News Round-up 11 March 2013

  • Mortgage vet to oversee integration

    Vericrest Financial has appointed Joe Anderson as chairman and ceo, effective immediately. He will lead the integration of Vericrest with Caliber Funding as the firms combine to create a full-service residential mortgage banking organisation offering both loan origination and servicing solutions.

    Anderson was formerly senior md of Countrywide Home Loans' prime retail lending division, leading all origination channels. He has .......

    Job Swaps 8 March 2013

  • RMBS ticks over as secondary supply slows

    US RMBS non-agency secondary supply was notably lighter in yesterday's session. A number of names were successfully covered, however, with dealer talk showing slight movement.

    BWIC volume for non-agency RMBS was US$326m, according to Interactive Data. "Bid-list supply is down across all major collateral segments, with this week's aggregate total running at the lowest level observed year-to-date. Dealer offering levels .......

    Market Reports 8 March 2013

  • Smith Breeden director returns

    Carl Bell has returned to Smith Breeden Associates as a principal and senior portfolio manager. As a senior member of the firm's investment team, he will focus on the analysis and trading of structured credit, including non-agency RMBS, CMBS and ABS. Bell will also continue to serve on Smith Breeden's board of directors; he has served as an outside director .......

    Job Swaps 8 March 2013

  • ML-style GSE unwind advocated

    The FHFA has called for a new securitisation infrastructure in which Freddie Mac and Fannie Mae's presence is contracted (SCI 5 March). The Bipartisan Policy Center also published a report last month calling for the elimination of the GSEs over a five- to 10-year period, but any such wind-down could have significant ramifications for the securitised markets.

    Freddie Mac and .......

    News 6 March 2013

  • Countrywide hearing scheduled

    The final hearing on Bank of America's proposed US$8.5bn settlement over alleged rep and warranties breaches on Countrywide loans is scheduled for 30 May. The New York State Supreme court has given all parties until 3 May to file briefs in support or opposition of the settlement.

    Barclays Capital MBS analysts' base-case forecast is that settlement proceeds will reach investors .......

    News Round-up 6 March 2013

  • Fed settlement made public

    Bank of America last week made public a July 2012 settlement agreement with the New York Fed, in which the bank was released from all fraud claims on mortgage securities that the Fed purchased when it bailed out AIG in 2008. Bank of America filed the settlement agreement in a Los Angeles federal court, where it is a defendant in .......

    News Round-up 6 March 2013

  • RFC issued on Canadian resi model

    Fitch has released a proposed new model framework for estimating losses on prime Canadian residential mortgage pools. Default risk estimates are based on a regression of loan and borrower attributes on roughly one million Canadian prime residential mortgages originated between 2003 and 2008.

    While Fitch obtained performance data from several major Canadian banking institutions, one data set in particular served .......

    News Round-up 5 March 2013

  • Servicer enforcement actions amended

    The OCC and the US Federal Reserve have released amendments to their enforcement actions against 13 mortgage servicers for deficient practices in mortgage loan servicing and foreclosure processing. The amendments require the servicers to provide US$9.3bn in payments and other assistance to borrowers.

    The amendments memorialise agreements in principle announced in January with Aurora, Bank of America, Citi, Goldman Sachs, .......

    News Round-up 5 March 2013

  • GSE scorecard released

    The FHFA has released its 2013 Conservatorship Scorecard for Fannie Mae and Freddie Mac. The Scorecard details specific priorities for the GSEs in 2013, which build upon the three strategic goals announced in FHFA's Strategic Plan for Enterprise Conservatorships released last year.

    These goals are: build a new securitisation infrastructure, including a common securitisation platform; contract Fannie Mae and Freddie .......

    News Round-up 5 March 2013

  • Korean RMBS credit negatives examined

    Declining apartment prices and transaction volumes in the Seoul Metropolitan area are credit negative for Korean RMBS, Moody's notes in its latest 'Structured Thinking: Asia Pacific' publication, because they indicate lower recovery prospects and a higher probability of default through increased refinancing risk. More than 90% of RMBS loans outstanding relate to properties in the Seoul Metropolitan area, in which .......

    News Round-up 1 March 2013

  • Euro uncertainty buoys secondary ABS

    The double blow of Moody's UK downgrade and inconclusive Italian election has had a mixed impact on the European secondary ABS markets. While some sectors have softened, one trader reports that activity over the last week has actually noticeably increased.

    The tone of the UK prime RMBS sector, for one, softened over the week. Granite bonds now price about 0.4% .......

    Market Reports 1 March 2013

  • Private appetite for mortgages to remain muted

    Fannie Mae and Freddie Mac continue to play a key role in the US housing market recovery, thus limiting the motivation for wide-reaching GSE reforms in the near future, according to Fitch. Both companies showed operating performance improvements during the first nine months of 2012 (SCI 30 November 2012), primarily driven by the high-quality business written since 2008, a recovery .......

    News Round-up 1 March 2013

  • Triton ratings unaffected by Pioneer claim

    A statement of claim has been lodged by Pioneer Mortgage Services to the Supreme Court of New South Wales in relation to monies allegedly owed to it as mortgage manager. The legal action is being taken against ANZ and Columbus Capital, respectively originator and seller of the underlying residential mortgages securitised in Triton Trust No.2 Bond Series 2013-1, which is .......

    News Round-up 1 March 2013

  • North/south divide for UK repossessions

    UK mortgage lenders have sold possessed properties at an average discount of 23% since 2008, compared with 13% prior to that period, according to Fitch. The time lenders take to sell possessed properties over the same period has decreased, implying that lenders are willing to sacrifice on price in order to achieve a timely sale.

    Given a combination of relatively .......

    News Round-up 1 March 2013

  • Bipartisan housing recommendations unveiled

    The US Bipartisan Policy Center's Housing Commission has unveiled a new vision for housing policy. The recommendations propose scaling back the government role in the country's housing finance system and reforming housing assistance programmes.

    The commission is co-chaired by former Senate Majority Leader George Mitchell, former Senator Christopher Bond, former Senator and HUD Secretary Mel Martinez and former HUD Secretary .......

    News Round-up 28 February 2013

  • EMEA securitisation director enlisted

    Stafford Butt has joined Wells Fargo Securities' asset-backed finance and securitisation group. He joins as md responsible for EMEA structured products origination and execution.

    Butt joins from WestLB, where he was executive director, and has previously worked at Mitsubishi UFJ Group as head of EMEA securitisation. He is based in London and reports to Chris Pink.

    .......

    Job Swaps 28 February 2013

  • Subprime sets pace for busy session

    Non-agency US RMBS supply shot up yesterday to around US$1.86bn, boosted by a large amount of subprime paper. SCI's PriceABS data shows activity from yesterday's session across all of the RMBS sub-sectors, with paper from as far back as 2002 appearing on bid-lists.

    "Overall BWIC volume has soared from the prior session, led by the subprime sector. Two .......

    Market Reports 27 February 2013

  • Mortgage settlement progress report released

    US mortgage servicers have distributed US$45.83bn in direct relief to over 550,000 homeowners - or roughly US$82,000 per homeowner - as part of the National Mortgage Settlement, according to a progress report released by the Office of Mortgage Settlement Oversight. As of 31 December, more than US$22.48bn of the relief has been via debt forgiveness, which has lowered monthly payments .......

    News Round-up 26 February 2013
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