RMBS

  • Rising prices seen in UK prime

    A slew of UK RMBS paper hit the secondary market yesterday, with a mixed bag of names out for the bid. Vintage prime senior bonds appear to be on a rising trend from summer levels, according to SCI's PriceABS BWIC data.

    The increases are most pronounced across Granite paper. A £8m slice of GRAN 2004-1 3A was covered during the .......

    Market Reports 10 October 2012

  • MBS finds favour among HFAs

    As US public finance issuers face increasing competition from commercial lenders for first-time low- to moderate-income homebuyers, they've branched out from traditional financing options to find alternatives to mortgage revenue bonds, according to S&P. To examine the shift in funding and its long-term credit implications for the housing finance agency (HFA) sector, the agency surveyed five state HFAs that have .......

    News Round-up 9 October 2012

  • Fitch warns on Portuguese tax proposal

    A proposed increase in Portuguese income tax would cut household income and could have a knock-on effect on arrears and default levels in the RMBS transactions, Fitch reports. The proposal would increase the average rate of income tax to 11.8% from 9.8% and introduce a 4% income tax surcharge for 2013.

    "The combination of the magnitude of the increase, the .......

    News Round-up 5 October 2012

  • Homeward impact likely to be muted

    Ocwen Financial has acquired Homeward Residential (formerly known as American Home Mortgage) for US$750m. The acquisition will increase Ocwen's portfolio by approximately 60%, but is expected to have a muted impact on non-agency RMBS investors.

    With the purchase, Ocwen will assume the servicing on all of Homeward's portfolios - including the Option One, Citi Residential Lending (Ameriquest) and Downey pools .......

    News 5 October 2012

  • RFC issued on mortgage 'shelf'

    The FHFA has released for public input a white paper on a proposed framework for a common securitisation platform and a model pooling and servicing agreement (PSA). The white paper seeks to identify the core components of mortgage securitisation that will be needed in the housing finance system going forward.

    These core components are linked to two cornerstone operational features: .......

    News Round-up 5 October 2012

  • Credit Suisse next for NCUA

    The NCUA has filed suit in Federal District Court in Kansas against Credit Suisse Securities. The suit alleges misrepresentations in connection with the underwriting and sale of RMBS to US Central Federal Credit Union, Western Corporate Federal Credit Union (WesCorp) and Southwest Corporate Federal Credit Union.

    The three credit unions paid over US$715m for the RMBS and each subsequently failed. .......

    Job Swaps 5 October 2012

  • NAIC methodology changes due

    NAIC has released additional details about the proposed changes to its methodology of calculating risk-based capital requirements on legacy RMBS and CMBS positions held by insurance companies. Its valuation of securities task force (VOSTF) has advised that the economic scenarios used in the 2012 year-end modelling process remain similar to last year, albeit with less stringent assumptions in some of .......

    News Round-up 4 October 2012

  • Pre-2005 RMBS reviewed

    Fitch has downgraded 6% of the US prime RMBS tranches it rates, following a review of the sector. Adverse selection and structural features vulnerable to tail risk have increased negative rating pressure for seasoned prime RMBS, the agency says.

    Delinquency rates continue to increase in pre-2005 prime pools, even while performance has improved for Alt-A, subprime and recent vintage prime .......

    News Round-up 4 October 2012

  • Servicer cashflow efficiencies improving

    Subprime residential mortgage servicers improved their cashflow efficiencies in the 2Q12, according to a new metric introduced by Moody's in the latest edition of its Servicer Dashboard publication. Foreclosure timelines continued to extend, while collections metrics for jumbo and Alt-A loans improved and cure and cashflow rates worsened for most servicers.

    Moody's Cash Flow Efficiency Metric increased in the second .......

    News Round-up 4 October 2012

  • ESAIL 2007-5 stalemate continues

    The extraordinary resolution to appoint Deutsche Bank as auction agent has been approved by Eurosail UK 2007-5NP class B1c, C1c and D1c noteholders, having been passed by the class A1a and A1c noteholders on 7 August. However, the trustee is unable to agree to the implementation of the proposal in its current form.

    The extraordinary resolution sanctions Deutsche Bank to .......

    News Round-up 3 October 2012

  • Working Group lodges lawsuit

    New York Attorney General Eric Schneiderman has announced a lawsuit against JPMorgan Securities, JPMorgan Chase Bank and EMC Mortgage. It is the first lawsuit to be brought by the RMBS Working Group, of which Schneiderman is co-chair.

    The suit relates to fraudulent misrepresentations and omissions in the sale of RMBS by Bear Stearns, which was bought by JPMorgan during the .......

    Job Swaps 3 October 2012

  • Rate cuts boost Aussie RMBS

    Australian mortgage performance is expected to improve in the third and fourth quarters, following a series of interest rate cuts, the most recent being a 25bp cut yesterday (2 October). In a sign of that mortgage performance is benefiting from the rate cuts from end-2011, delinquencies in the Australian prime RMBS sector have already decreased to 1.54% in 2Q12 from .......

    News Round-up 3 October 2012

  • FGIC rehab plan filed

    FGIC's court-appointed rehabilitator, the New York state insurance regulator, last week filed a proposed rehabilitation plan with the New York Supreme Court. The proposal involves a portion of the monoline's policy claims - initially set at 15%, but potentially increasing to 30.4% - being paid in cash.

    The remaining claim amount would be reimbursed in the form of a deferred .......

    News Round-up 2 October 2012

  • Delay expected for Rescap recoveries

    Rescap secured bondholders have ended an agreement to support Ally Financial's reorganisation plan. The ad-hoc steering committee - representing US$2.2bn of junior secured Rescap noteholders - has withdrawn its support for the plan, given the protracted nature of the legal proceedings thus far and the chance to improve its negotiating position in future disputes with other creditors.

    According to Ally, .......

    News Round-up 2 October 2012

  • REIT adds jumbo specialist

    Dan Koch has joined Two Harbors Investment Corp as md. He was previously responsible for sourcing jumbo prime loan acquisitions at Redwood Trust.

    Koch has also previously worked at Morgan Stanley, where he was responsible for executing agency and non-agency loan sales and securitisations. Before that he was at Charter One Bank and US Bancorp.

    .......

    Job Swaps 2 October 2012

  • Healthy start for RMBS

    October kicked off with some decent secondary activity for US RMBS, particularly for non-agency paper. Offering levels are higher than they were over the summer, but remain in line with those seen in the last couple of months.

    SCI's PriceABS BWIC data shows 138 RMBS line items for yesterday's session, with Interactive Data estimating that non-agency volumes stood .......

    Market Reports 2 October 2012

  • Unusual exchange offer unveiled

    Banco Santander Totta has announced an unusual exchange offer for investors in three senior tranches of its RMBS, as part of a liability management exercise. The lender is proposing to switch holders of the HIPOT 1 A, 4 A and 5 A2 bonds into a Santander covered bond (SANTAN Float 01/12/14).

    The RMBS were previously tendered by the originator in .......

    News 28 September 2012

  • MBS coverage boosted further

    Gleacher & Company Securities has hired Mark Ginsberg and Felix Partow as mds in its MBS and rates division. The pair will be based in the firm's New York office.

    Ginsberg previously served as md on the MBS trading desk at Sandler, O'Neill + Partners, where he structured and traded new-issue CMOs and mortgage derivatives for the firm. Over the .......

    Job Swaps 28 September 2012

  • G-fee hike to slow NY prepays

    The FHFA is seeking to increase GSE guarantee fees for single-family mortgages that they acquire in five states - Illinois, Connecticut, Florida, New Jersey and New York. Such state level pricing not only marks a change from the desire to smooth out regional differences in mortgage pricing, but also indicates that certain local factors - such as foreclosure timelines - .......

    News 27 September 2012

  • Unicredit tender results in

    Unicredit has published the results for all bonds subject to its recent tender (SCI 12 September), apart from four Cordusio tranches - CORDR 1 C, 2 C, 4 C and 4 D - whose offer deadline has been extended to today. The bank accepted €571.96m nominal value of notes out of the €985.75m offered via an unmodified Dutch auction. Average .......

    News Round-up 27 September 2012

  • Euro RMBS switch touted

    European ABS analysts at JPMorgan have moved to neutral from being overweight senior UK prime RMBS, following the significant rally in spreads since the start of 2012 (SCI 24 September). However, they maintain overweight recommendations for UK prime double-As, single-As and triple-Bs generically at 140, 185 and 235 respectively.

    "Despite our less positive recommendation on UK prime seniors, we do .......

    News Round-up 26 September 2012
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