RMBS

  • Second-lien RMBS criteria reviewed

    S&P has issued an advance notice of proposed criteria change regarding its methodologies and assumptions for analysing US RMBS backed predominantly by second-lien mortgage loans. Transactions for review include those in which most loans in the mortgage pool are second-liens and classified as home equity line of credit (HELOC), closed-end second-lien, second-lien high-combined-loan-to-value (HCLTV) or home improvement.

    The agency says .......

    News Round-up 3 January 2012

  • Servicer compensation proposals slammed

    SIFMA has filed a comment letter on the FHFA's Alternative Mortgage Servicing Compensation Discussion Paper (SCI 28 September). The association says that although it respects the FHFA's interest in aligning servicers' financial interests and incentives with those of other pertinent parties, particularly those of investors, it has not seen any effort by FHFA to prove that case.

    "The servicing industry .......

    News Round-up 23 December 2011

  • Bank's RMBS rap from regulator

    FINRA has fined Barclays Capital US$3m for misrepresenting delinquency data in connection with subprime RMBS it issued and also fined it for inadequate data supervision. In settling, Barclays has neither admitted nor denied the charges.

    Subprime RMBS issuers are required to disclose historical performance information for securitisations with similar mortgages to those in the RMBS being offered to investors. FINRA .......

    Job Swaps 22 December 2011

  • Chapel deals downgraded

    S&P has lowered and removed from credit watch negative its credit ratings on all classes of notes in Chapel 2003-I. At the same time, it lowered and removed from credit watch negative ratings on the class A2, B, C, D, E and F notes, and affirmed and removed from credit watch negative the rating on the class A1 notes in .......

    News Round-up 22 December 2011

  • Updated LMI criteria hits

    Fitch has downgraded the ratings of 46 tranches of 43 Australian RMBS transactions, following the implementation of its updated Australian RMBS and Lenders Mortgage Insurance (LMI) criteria. The agency has now completed its review of all Australian RMBS transactions, with the ratings of 308 tranches in 117 deals not being impacted.

    The affected tranches are made up of 41 equity .......

    News Round-up 22 December 2011

  • RMBS trader joins Stifel

    RMBS trader Eric Daouphars has joined Stifel Nicolaus. He was most recently md at Citadel Securities and previous positions include md at ICP Capital and Bank of America, as well as director at UBS Investment Bank and vp at Salomon Smith Barney.

    .......

    Job Swaps 22 December 2011

  • Updated HARP 2.0 guidelines released

    Fannie Mae has released updated guidelines for HARP. Most of the changes were previously announced, but the removal of the 'borrower ability to pay' clause was not expected and could have a significant impact.

    Loans delivered to Fannie Mae must meet certain underwriting criteria. The borrower ability to pay clause was one such requirement, stipulating that lenders must determine whether .......

    News 21 December 2011

  • FSA proposals credit negative for NC RMBS

    Moody's says that the UK FSA's revised proposals for tighter rules on mortgage lending will be credit neutral for UK prime RMBS but credit negative for UK non-conforming RMBS. The proposed measures are less prescriptive than the previous consultation in July 2010, but are still designed to ensure that any borrower taking out a new mortgage can meet the associated .......

    News Round-up 21 December 2011

  • PEARL RMBS restructured

    SNS Bank has restructured PEARL Mortgage Backed Securities 1, 2 and 3, following the update to Fitch's criteria for rating RMBS transactions backed by the Nationale Hypotheek Garantie (NHG).

    Under the restructuring, the proceeds of a partial redemption of the class A notes were used to issue mezzanine class S notes. The class S notes rank senior to the class .......

    News Round-up 21 December 2011

  • KBCM expands MBS team

    KeyBanc Capital Markets has made two additions to its fixed income team to expand its MBS capabilities. Christopher Moroz becomes vp while Michael Giasi joins as a director.

    Moroz will be based in Cleveland and tasked with selling MBS products to banks. He most recently worked for JPMorgan Chase as financial services vp, performing credit and portfolio analysis.

    Giasi will .......

    Job Swaps 20 December 2011

  • CMO trader moves again

    Peter Ma has joined Guggenheim Partners as md and head of agency collateralised mortgage obligations trading. He joins from MF Global, which he joined three months ago.

    Ma's previous roles include senior vp at Keefe, Bruyette & Woods, executive director at UBS Investment Bank and first vp at PaineWebber.

    .......

    Job Swaps 20 December 2011

  • SEC charges ex-GSE directors

    The US SEC has charged six former Fannie Mae and Freddie Mac executives with securities fraud. The SEC alleges the defendants knew and approved of misleading statements which claimed the companies had minimal holdings of subprime loans.

    A complaint has been filed against former Fannie Mae ceo Daniel Mudd, former chief risk officers Enrico Dallavecchia and former executive vp Thomas .......

    Job Swaps 19 December 2011

  • Spanish RMBS performance reviewed

    Moody's has completed a performance review of the Spanish RMBS market and updated its portfolio loss assumptions in 67 transactions. At the same time, the agency has placed on review for downgrade the ratings of 47 tranches in 20 transactions due to worse-than-expected collateral performance. The rating action reflects the performance to date of the affected transactions, the level of .......

    News Round-up 19 December 2011

  • Trustees open investigations

    Clients of Gibbs & Bruns have issued instructions to BNY Mellon, US Bank, Wells Fargo, Citibank and HSBC, as trustees, to open investigations of ineligible mortgages in pools securing over US$95bn of RMBS issued by JPMorgan affiliates.

    Collectively, the clients hold over 25% of the voting rights in 243 trusts that issued these RMBS. The holders anticipate that they may .......

    Job Swaps 16 December 2011

  • FDIC, former WaMu officials settle

    The FDIC has agreed a settlement with the former directors and officers of Washington Mutual Bank (WaMu). Under the agreement, US$64.7m will be handed over to the FDIC.

    The money is comprised of almost US$40m from insurance proceeds, $425,000 in cash from the defendants and the US$24.7m face value of the defendants' bankruptcy claims that are pending in the Chapter .......

    Job Swaps 16 December 2011

  • BOE-compliant models offered

    Lewtan is providing Bank of England-compliant cashflow models for the UK RMBS market via its ABSNet web portal, together with new functionality, including an asset projection engine and bond analytics. As of 30 November, the Bank requires issuers to provide investors with access to specific deal documentation, reports, loan level data and a liability cashflow model (SCI 31 October).

    .......

    News Round-up 15 December 2011

  • NHG RMBS on review

    S&P has placed on credit watch negative its credit ratings on 38 tranches in 16 Dutch RMBS backed by Nationale Hypotheek Garantie (NHG)-guaranteed loans. The action follows the credit watch negative placement of the agency's long-term sovereign ratings on the Netherlands.

    The NHG is issued by the Stichting Waarborgfonds Eigen Woningen (WEW). WEW's ability to meet its payments when it .......

    News Round-up 14 December 2011

  • Impact of REO dispositions uncertain

    Fitch expects single-property REO and bulk REO sales to be a key activity in the US housing market over the next two years. However, uncertainties around FHFA's next steps make the disposition of those assets and their impact on the housing market hard to predict and variable by location.

    Lenders Processing Service estimates that, nationally, over two million properties are .......

    News Round-up 14 December 2011

  • Aussie RMBS arrears falling

    Australian prime RMBS arrears have fallen for the second consecutive quarter across all 30+ day indices, according to Fitch's 3Q11 Dinkum Index results. The index decreased by 17bp to 1.52% in September 2011 from 1.69% in June 2011.

    "The stable mortgage performance in 3Q11 reflects that households have adjusted to the payment stresses of 4Q10 and 1Q11. Mortgage performance is .......

    News Round-up 13 December 2011

  • UK RMBS impacted

    S&P has placed on credit watch negative its credit ratings on 764 tranches in 119 UK RMBS, following an update to its criteria for rating such transactions (SCI 9 December). Affected deals are those where the agency believes there is at least a one-in-two chance that ratings will be lowered, following the application of its updated criteria.

    The rating actions .......

    News Round-up 13 December 2011

  • MBS CCP announced

    The DTCC's Fixed Income Clearing Corporation (FICC) mortgage-backed securities division has filed an application with the SEC to provide central counterparty (CCP) and pool netting services for trades in US agency MBS. The initiative is designed to reduce the risks and costs associated with trading in this market.

    "We anticipate that our central counterparty services will reduce risk by greatly .......

    News Round-up 13 December 2011
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