RMBS

  • 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

  • RMBS ratings approach explained

    US RMBS with weak structural frameworks are unlikely to receive a Aaa rating from Moody's, even if they have strong prime loan pools and satisfactory originators and servicers. The agency explains that RMBS with provisions that significantly limit originators' obligations to repurchase defective loans, have a narrow third-party pre-securitisation due diligence scope or a weak alignment of interests between the .......

    News Round-up 26 February 2013

  • ClearPoint off-loaded

    Gleacher & Company has sold substantially all of the assets of its ClearPoint subsidiary to Ocwen Financial Corporation subsidiary Homeward Residential. The firm announced its plans to sell the business in 3Q12, after defaulting under agreements with its lenders that required Gleacher to provide payment guarantees.

    .......

    Job Swaps 25 February 2013

  • Uploading answers

    Originators get to grips with ED requirements, liabilities

    The ECB deadline for submitting loan-level deal data to the European DataWarehouse is the end of March. However, concerns about the legal implications of uploading such data have held some originators back.

    The ED has to maintain a level playing-field and so cannot give special dispensation to individual banks, but at the same time it says it has listened to .......

    News Analysis 22 February 2013

  • Top arrangers decided

    The rankings in the SCI league tables for bank arrangers in the structured credit and ABS markets have been finalised for 2012, with RBS and Barclays Capital taking top spot in Europe and the US respectively. The moribund European new issuance market saw a drop in volumes over the previous year, while the US kicked on again from 2011's increased .......

    News Round-up 21 February 2013

  • Liquidation list lifts US RMBS

    Wednesday saw secondary supply shoot up, with SCI's PriceABS data displaying three times as many RMBS line items as for the previous session. Non-agency US RMBS was particularly active, with increased volume across the fixed, hybrid and subprime sectors.

    The fixed space was boosted by a liquidation list and prime fixed tranches accounted for over half the fixed .......

    Market Reports 21 February 2013

  • RMBS rep and warranty warning

    Recent rep and warranty proposals in new US RMBS deals may expose investors to added risks from weak underwriting and defective mortgage loans, according to Fitch. As such, the agency believes that these weaker proposals need to be accounted for in the credit enhancement where possible.

    The rep and warranty framework established post-crisis as part of ASF Project Restart reflects .......

    News Round-up 21 February 2013

  • Re-mods lengthening RMBS cashflows

    Overall modification rates for US non-agency RMBS were significantly lower in 2012 than they were two years before, but borrowers that have been previously modified account for an increasing share of those mods. The higher share of re-modifications is expected to lengthen cashflows, especially for deals that form part of the servicing transfers announced in the past few months.

    About .......

    News 20 February 2013

  • Mixed performance for Mexican RMBS

    Persistent servicer challenges and declining recovery rates colour the performance of Sofoles-sponsored transactions, Fitch notes in a special report on Mexican RMBS. Performance varies across three segments: transactions sponsored by government entities Infonavit and Fovissste perform well; bank RMBS exhibit mixed credit metrics; and non-bank sponsored transactions backed by Sofoles loans remain stressed.

    Almost one-third of the Sofoles-sponsored RMBS portfolio .......

    News Round-up 20 February 2013

  • Viable exit

    Private label refi initiatives gaining traction

    Providing performing borrowers in non-agency RMBS pools with a viable exit from their high-interest mortgages is attracting increasing attention among US policymakers. A couple of options are emerging, but a legislative approach - whereby mortgages are refinanced rather than crammed-down - would be preferable from an investor perspective.

    A featured address at last month's ASF conference by Michael Stegman, counsellor .......

    News Analysis 20 February 2013

  • Action consequences

    Increased focus on rating agency performance

    Competing rating agencies could gain market share due to the US Department of Justice's civil lawsuit against S&P (SCI 6 February). But it is also hoped that ratings standards and ratings transparency will improve as a result.

    Speculation is rife about why Moody's isn't being targeted by the DOJ, along with S&P. Moody's ceo Ray McDaniel was recently reported as .......

    News Analysis 19 February 2013

  • New role for legal vet

    Joel Katz has joined Cantor Fitzgerald as md. In his new role he covers banks in Cantor's DCM mortgage securities department.

    Katz previously worked at Keefe, Bruyette & Woods and has previous industry experience from time spent at Sandler O'Neill, William R Hough, Raymond James, Freddie Mac and Fannie Mae. He has been in the industry for three decades.

    .......

    Job Swaps 18 February 2013

  • RMBS trader moves on

    David Lehman has joined Hudson Advisors in New York. He is vp, with responsibility for re-performing/sub-performing residential mortgage whole loans and mortgage servicing rights.

    Lehman previously worked at Navigant Consulting. He has also held RMBS trading positions at WaMu Capital Corp and Morgan Stanley as well as analyst roles at Credit Suisse and Deloitte.

    .......

    Job Swaps 18 February 2013

  • REIT demand returns

    Higher MBS yields and rising stock prices have changed the investment landscape for US mortgage REITs from announcing share buybacks just a few months ago to raising new equity for MBS purchases. Indeed, mortgage REITs have announced US$1.7bn in new capital offerings so far this year, according to Bank of America Merrill Lynch figures.

    Although REITs' book equity declined in .......

    News 15 February 2013

  • Securitised products vets shift roles

    Morgan Stanley has made a number of changes to its securitised products group. Yared Yawand-Wossen, who has over 18 years with the bank, has a new role in charge of ABS and non-agency RMBS. He continues to report to Robert Hershy, who has been at Morgan Stanley more than 28 years and becomes global head of the bank's new CLO .......

    Job Swaps 14 February 2013

  • Wake-up call

    Change in transparency, buying behaviour needed

    The recent indictment of former Jefferies trader Jesse Litvak for misrepresenting RMBS prices has served as a wake-up call for the industry (SCI 29 January). Pressure has increased on sellers of complex securities to provide a basis for prices, while buyers are being urged to demand more information.

    Two potential outcomes are possible as a result of the Litvak indictment: .......

    News Analysis 14 February 2013

  • FHA reform gaining momentum?

    FHA reform discussions gained momentum last week, with the House Financial Services Committee holding the first of two meetings scheduled for February to discuss changes to the FHA programme. Testimony at the hearing stressed that the FHA should focus on its original core mission: insuring mortgages for low- and moderate-income borrowers and first-time home buyers.

    Two methods for reducing FHA .......

    News Round-up 13 February 2013

  • New agency derivative indices debut

    Markit has launched IOS, PO and MBX indices referencing 3% and 3.5% Fannie Mae pools issued in 2012. MBS analysts at Barclays Capital suggest that the closest comparable index for the 3.5 2012 cohort is the 3.5 2010 index, albeit the 2012 cohort is expected to pay slower and thus trade better than the 2010 cohort.

    They note that this .......

    News Round-up 13 February 2013

  • ABS trading exec recruited

    KNG Securities has appointed Armando La Morgia to its fixed income team, as the firm builds its presence in the ABS market. He will play a key role in developing the firm's capabilities within the ABS trading and client solutions business.

    La Morgia was previously senior portfolio manager at Hemera Capital Management, where he focused on UK, European RMBS and .......

    Job Swaps 13 February 2013

  • Healthy mix in quieter RMBS session

    US RMBS is not the only market to have gone quiet in the wake of the heavy snow in the north-eastern US and Canada, but the sector still saw adequate supply during Monday's session. Agency activity remained moderate, while non-agency activity was more noticeably decreased, with Interactive Data figures putting BWIC volume for the two sectors at around US$600m.

    Agency .......

    Market Reports 12 February 2013

  • RMBS interest shortfalls increasing

    Morningstar Credit Ratings has reviewed monthly occurrences of interest shortfalls in US RMBS across the second half of 2012. The data shows a steadily increasing trend in shortfalls across different collateral types, tranche types and vintages.

    As of the December 2012 remittance cycle, approximately 21.8% of the deals in the Morningstar sample experienced a shortfall in at least one tranche. .......

    News Round-up 12 February 2013
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