RMBS

  • Mizuho settles CDO charge

    The US SEC has charged Mizuho Securities USA and three former employees with misleading CDO investors. The commission says dummy assets were used to inflate the credit ratings of a deal backed by subprime bonds.

    The SEC says Mizhuo made approximately US$10m in structuring and marketing fees for Delphinus CDO 2007-1, which defaulted in 2008. Mizuho employees submitted to S&P .......

    Job Swaps 19 July 2012

  • LTVs secondary for Japan RMBS delinquencies

    The occurrence of mortgage delinquencies in Japan during the global financial crisis was more closely correlated with employment status than with high LTV ratios, says Moody's. Japanese lending criteria places more emphasis on occupation and income than on LTV ratios.

    Self-employed borrowers or those employed at small enterprises were more affected by the crisis than those at large companies, the .......

    News Round-up 18 July 2012

  • Eminent domain legality questioned

    Mortgage Resolution Partners' (MRP) proposal to use eminent domain to acquire mortgage loans, currently being considered by San Bernardino County and which would be expected to negatively affect private label RMBS (SCI passim), would be unconstitutional, says SIFMA. The association has released a legal memo drafted by O'Melveny & Myers which says the proposal would not survive a legal challenge.

    News Round-up 18 July 2012

  • Rating action taken on Alt-A RMBS

    Moody's has downgraded the ratings of 95 tranches, upgraded one tranche and confirmed another 36 tranches from 20 RMBS transactions, backed by Alt-A loans, issued by Credit Suisse from 2001 to 2004. The actions affect US$1.2bn of securities.

    The actions are a result of the recent performance of Alt-A pools originated before 2005 and reflect Moody's updated loss expectations on .......

    News Round-up 17 July 2012

  • BoE scheme 'RMBS negative'

    The Bank of England has launched its funding for lending scheme (FLS), intended to improve lending to the real economy. While this should be beneficial for SME and mortgage lending, it is likely to have a significant negative impact on the UK RMBS primary issuance market, according to Barclays Capital securitised products analysts.

    The scheme aims to boost the incentive .......

    News 17 July 2012

  • HARP accounts for more refis

    The share of HARP refis as a percentage of total refinancings reached an all-time high of 20% in May. The average from January to April had been 16% and for the whole of 2011 had been 13%, note RMBS analysts at Bank of America Merrill Lynch.

    Within HARP refis, the share of loans with an LTV of 105%-125% increased to .......

    News Round-up 17 July 2012

  • MERS, AG settlement reached

    MERSCORP has reached a settlement with Delaware Attorney General Joseph Biden. MERSCORP has agreed not to file as plaintiff any mortgage foreclosure actions in the state and agreed to quality control and transparency requirements.

    Under the settlement, MERSCORP will more closely monitor the integrity of its signing officer process to avoid a repeat robo-signing and will conduct semi-annual audits, which will be .......

    News Round-up 16 July 2012

  • Ambac RMBS play touted

    The recent decision by the Wisconsin Commissioner of Insurance to pay Ambac non-agency RMBS policyholders 25% of accrued and future claims in cash (SCI 12 June) should provide a significant payment - believed to be about US$800m in total - to many bondholders. These bonds could represent one way of capitalising on a housing market recovery.

    Ambac-wrapped non-agency RMBS are .......

    News 12 July 2012

  • Call for QM safeharbour

    SIFMA public policy and advocacy evp Kenneth Bentsen has testified before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit to discuss the Qualified Mortgage (QM) proposed rulemaking and its impact on the cost and availability of mortgage credit.

    "A broad QM definition with clear parameters and a safe harbour for compliance is vital to ensuring the continued .......

    News Round-up 12 July 2012

  • APAC upgrades outnumber downgrades

    Fitch reports that APAC structured finance upgrades outnumbered downgrades in 2Q12 for the first time in two years. There were 24 upgrades, four downgrades and 267 affirmations during the quarter.

    The upgrades were predominantly driven by stronger-than-expected asset performance and increased available credit enhancement in Australia and India. The limited downgrades in the quarter were mostly to distressed tranches of .......

    News Round-up 12 July 2012

  • Differentiation debated

    Call for renewed focus on RMBS servicing incentives

    Efforts to overhaul residential mortgage servicers' compensation and incentives have been submerged by regulatory rule-making and compliance with the Attorneys General settlement. However, a recently issued commentary calls for renewed focus on this issue, suggesting that the RMBS servicing industry has much to learn from CMBS servicing practices.

    The crux of the commentary, entitled 'All servicers are not created equal: .......

    News Analysis 12 July 2012

  • Restive market seeks 'game changer'

    It has been a quiet spell for the European RMBS market. Demand seems to be outstripping supply, but a recent transaction - Dutch Mortgage Portfolio Loans X - has caught the eye and change could be on the horizon.

    "The lack of issuance is really starting to show," says one trader. "The short end is extremely well bid and trading .......

    Market Reports 11 July 2012

  • Dodd-Frank provisions reviewed

    SIFMA public policy and advocacy evp Kenneth Bentsen yesterday testified before the House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises regarding the impact of the Dodd-Frank Act. Specifically, he focused on the implementation of the Volcker Rule, credit risk retention, Title VII and Section 165(e) single counterparty credit limits.

    "It is essential that US regulatory agencies, in .......

    News Round-up 11 July 2012

  • Foreclosure standards improving

    The mortgage settlement between US state attorneys general and the five largest mortgage servicers (SCI passim) has introduced more clarity to foreclosure standards and a marginal impact on private-label RMBS performance thus far, according to Fitch.

    As per the settlement agreed upon five months ago, US$25bn was provided for borrower relief. Of that amount, US$10bn was allotted to principal reductions .......

    News Round-up 10 July 2012

  • ML3 auctions announced

    The New York Fed has announced four more asset sales from the Maiden Lane III vehicle, with bids due by 12 July.

    The first auction comprises three CDO tranches worth US$34.5m. Barclays Capital, Citi, Credit Suisse, Goldman Sachs, Guggenheim Securities, JPMorgan, Bank of America Merrill Lynch, Morgan Stanley, Nomura and RBS Securities have been invited to bid for the collateral.

    News Round-up 10 July 2012

  • Eminent domain weighs on RMBS

    Fitch believes that the potential use of eminent domain, as proposed by San Bernardino County (SCI 9 July), would negatively affect private label RMBS performance. Of particular concern are proposals that focus on borrowers who are current on their existing mortgage obligations and who would otherwise continue performing as expected but for the ability to restructure their mortgage via the .......

    News Round-up 10 July 2012

  • Eminent domain initiative slammed

    San Bernardino County - along with two other cities in the area - has formed a joint powers authority, which wouldn't need permission from the respective city councils to use eminent domain rights to seize ownership of underwater mortgages unless public money is needed. ABS analysts at Barclays Capital suggest that a possible next step for the authority is to .......

    News 9 July 2012

  • ED private placement completed

    European DataWarehouse (ED) has successfully completed a private placement with 15 key investors, consisting largely of global banks and institutions. The placement was coordinated by Perella Weinberg Partners.

    Proceeds from the placement will be used to finalise the build-out of ED, as well as to provide the business with ongoing working capital. Completion of the platform, which will include an .......

    News Round-up 9 July 2012

  • Loan-level data implementation scheduled

    The ECB has released a timeframe for the implementation of loan-level data reporting for ABS. Provision of loan-by-loan information for RMBS will be mandatory as of 1 December 2012, with SME ABS and CMBS reporting to be implemented by 1 January 2013 and consumer finance, leasing and auto loan ABS reporting by 1 January 2014.

    Loan-level data is to be .......

    News Round-up 9 July 2012

  • JHF future outlined

    A government committee on the future of the Japan Housing Finance Agency has released its final conclusions. The JHF is to be an administrative agency.

    "Other aspects of the conclusions are not particularly surprising and are unlikely to affect JHF MBS," note ABS analysts at Bank of America Merrill Lynch. "However, the report mentions the need to discuss the possibility .......

    News Round-up 6 July 2012

  • UKAR tender results in

    Bradford & Bingley and Northern Rock Asset Management have disclosed the results for their tender offers on Aire Valley, Granite and Whinstone subordinate bonds (SCI 20 June). UK Asset Resolution accepted bonds equivalent to an outstanding nominal value of £534m, out of the approximately £1.19bn tenders received, for a total cost of around £400m.

    The triple-B rated Aire Valley class .......

    News Round-up 6 July 2012
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