RMBS

  • Fannie loan-level data released

    Fannie Mae has released loan-level data for its newly issued single-family MBS as part of its loan-level disclosures initiative.

    "We believe that disclosing loan-level data is an important step towards meeting our investors' desire for enhanced transparency," comments Laura Simmons, vp MBS disclosure policy and operations. "In subsequent releases, we expect to be able to provide additional data elements in .......

    News Round-up 5 March 2012

  • Currency conundrum

    Kazakh RMBS highlights EM ABS redenomination risks

    A decision by the Supreme Court of Kazakhstan to prevent the indexation of mortgage balances to the US dollar has highlighted the continuing legal and currency risks involved in emerging market securitisations, particularly during time of economic stress. Meanwhile, prospects for new cross-border RMBS from Russia and the CIS remain dim, but the domestic market continues to progress.

    The Supreme .......

    News Analysis 5 March 2012

  • Broker fined for CMO fraud

    The former ceo of Brookstreet Securities Corp has been ordered by a federal judge to pay a maximum US$10m penalty in a securities fraud case. The US SEC had brought charges against Stanley Brooks and Brookstreet for systematically selling risky MBS to customers with conservative investment goals (SCI 16 December 2009).

    The SEC says Brooks and Brookstreet developed a programme .......

    Job Swaps 5 March 2012

  • Housing finance framework unveiled

    The National Association of Home Builders (NAHB) has put forward what it describes as a comprehensive framework for US housing finance reform that would transition Fannie Mae and Freddie Mac to a new mortgage securitisation system for single-family and multifamily conventional mortgages. It says the system must include: private, federal and state sources of housing capital; offer a reasonable menu .......

    News Round-up 5 March 2012

  • Dutch RMBS restructured

    NIBC has restructured its Sound II RMBS, effective as of 2 March. Moody's confirms that the restructuring will not result in a reduction or withdrawal of the current ratings on the notes.

    Under the restructuring, new class S notes have been issued against the partial redemption of the class A notes, increasing the credit enhancement available to senior noteholders from .......

    News Round-up 5 March 2012

  • Call for targeted principal reductions

    The benefits that principal reductions may offer need to be weighed against the potential for an increase in moral hazard risk, which may - over time - precipitate higher mortgage defaults, according to Fitch.

    The State Attorneys General recently-announced settlement with major mortgage servicers includes an agreement to offer principal reductions to help struggling borrowers keep their home (SCI passim). .......

    News Round-up 1 March 2012

  • Servicer 'action plans' released

    The US Federal Reserve has released action plans for supervised financial institutions to correct deficiencies in residential mortgage loan servicing and foreclosure processing. It also issued engagement letters between supervised financial institutions and independent consultants retained by the firms to review foreclosures that were in process in 2009 and 2010.

    The action plans are required by formal enforcement actions issued .......

    News Round-up 1 March 2012

  • ML II wound down

    The remaining securities in the Maiden Lane II portfolio have been sold. The New York Fed's management of the ML II portfolio will result in full repayment of its US$19.5bn loan and generate a net gain for the benefit of the public of approximately US$2.8bn, including US$580m in accrued interest.

    In the latest sale, assets with a current face amount .......

    News Round-up 29 February 2012

  • GSE plan 'promising' for agency, non-agency RMBS

    Fitch believes that the FHFA's strategic plan (SCI 22 February) is promising for agency and private label RMBS. It could encourage private capital into the market, improve liquidity, increase transparency and shrink GSE liabilities, the agency says. Additionally, certain facilities already being utilised in the private sector could make several of the proposals less costly and provide for a shorter .......

    News Round-up 29 February 2012

  • Increased MVD for Brazilian RMBS

    Fitch has updated its rating criteria for assessing credit risk in Brazilian RMBS. The changes focus on revised assumptions relating to the estimation of default and recovery rates for Brazilian mortgage portfolios with a more forward-looking approach. The revised assumptions include increased market value decline (MVD) assumptions and increased expected foreclosure frequencies, including adjustments for specific product and borrower characteristics.

    News Round-up 28 February 2012

  • 'Blueprint' trials

    Countrywide settlement moves closer

    Bank of America's US$8.5bn Countrywide RMBS settlement case has returned from federal court to New York state court, likely hastening its approval. A resolution of the settlement is expected to provide a blueprint for similar cases against other large originators.

    Securitisation analysts at Barclays Capital believe that the return of the Countrywide case to New York is preferable to it .......

    News Analysis 28 February 2012

  • Resi exposures weighing on US banks

    Performance of the US banking industry will continue to be weighed down by elevated losses from residential real estate exposure, according to Fitch.

    The agency estimates that the top 20 banks could incur aggregate losses in excess of US$80bn on home equity and one to four family portfolios over the next three years. This estimate represents a loss rate of .......

    News Round-up 27 February 2012

  • Busted swap claim agreed

    ESAIL 2007-PR1 class A noteholders have approved an extraordinary resolution in a meeting held on 17 February that terminates the hedging agreement with Lehman Brothers Holding Inc (SCI 24 January). They have agreed to a stipulated and 'agreed claim amount' of US$106m - believed to only be the second Lehman 'busted swap' transaction to reach an agreed claim amount.

    The .......

    News Round-up 24 February 2012

  • Slow improvement seen in shadow inventory

    The percentage of US residential mortgage delinquencies and new foreclosures started in 4Q11 declined modestly from the previous quarter, as well as from the levels seen a year ago, according to S&P.

    "We believe decreasing delinquencies represent a positive trend for the underlying collateral performance of US RMBS and the housing market's recovery," comments S&P primary research analyst Erkan Erturk. .......

    News Round-up 23 February 2012

  • GSE strategic plan disappoints

    FHFA acting director Edward DeMarco yesterday sent Congress a strategic plan for the next phase of the conservatorships of Fannie Mae and Freddie Mac. However, it appears not to be the concrete plan of action that some were hoping for.

    The FHFA plan builds on DeMarco's February 2010 letter to Congress on the conservatorships and sets forth objectives and steps .......

    News 22 February 2012

  • Knight grows mortgage credit team

    Knight Capital has hired several former MF Global mortgage credit sales and trading personnel in part of an effort to grow its structured products business. The arrivals boost Knight's existing mortgage credit team and further hires are expected soon.

    Michael Corsi joins as mortgage sales md and Rus Margolin joins as non-agency trading md. Miguel Vazquez and Doug Adelman both .......

    Job Swaps 22 February 2012

  • Langton restructured

    The Langton UK RMBS master trust has been restructured. Under the restructuring, Santander has: repurchased around £18bn of trust collateral; repaid £18.4bn of triple-A rated notes and £3.5bn of unrated Z notes outstanding under the Langton Securities 2008-1 and 2010-1 issuers; and reduced the size of the shared funding reserve fund from £43m to £20.5m. Additionally, the Langton Securities 2008-1 .......

    News Round-up 21 February 2012

  • MBS team boosted

    The PrinceRidge Group has made two additions to its RMBS division. Kate Lee joins from BNP Paribas and Jason Huey joins from Nomura. Both Lee and Huey will report to RMBS head Barry Berkeley.

    Lee joins as a director. She will lead the firm's new issue CMO effort and will also trade mortgage derivatives. Huey joins as a director and .......

    Job Swaps 21 February 2012

  • Chilean RMBS criteria enhanced

    Fitch has updated its rating methodology for assessing credit risk in Chilean residential mortgage loan pools that back RMBS. The main changes focus on a more forward-looking approach, increased market value decline (MVD) assumptions, increased expected foreclosure frequency and adjustments for specific product and borrower characteristics.

    In particular, the updated criteria place an emphasis on Fitch's performance expectations, especially at .......

    News Round-up 20 February 2012

  • Balancing act

    Relative merits of covered bonds versus RMBS discussed

    Interest in covered bonds continues to grow, partly due to favourable regulatory treatment. However, panellists at a recent covered bond seminar hosted by S&P highlighted the potential dangers of over-promoting the instruments at the expense of other asset classes, such as RMBS.

    Neil Calder, head of investments - credit, treasury at the EBRD, noted during the seminar that RMBS transactions .......

    Talking Point 17 February 2012

  • BoE RMBS loan tapes analysed

    UK RMBS issuers began providing loan-level data and cashflow models to investors - as required by the Bank of England (SCI 31 October 2011) - in November. JPMorgan ABS strategists have analysed the loan tapes, with the aim of providing a broader overview of performance trends in the sector, and find that they offer additional clarity into the master trusts.

    News 16 February 2012

×