RMBS

  • Servicer consent order compliance reviewed

    The OCC has published a report on the actions by 12 US bank and federal savings association mortgage servicers to comply with consent orders issued in April to correct deficient and unsound foreclosure practices (SCI 14 April). While much of the work to correct identified weaknesses in policies, operating procedures, control functions and audit processes will be substantially complete in .......

    News Round-up 23 November 2011

  • Shadow inventory liquidation timeline declining

    Regional default and liquidation rates varied widely in 3Q11, prompting a marginal improvement in the number of months that S&P estimates it will take to clear the supply of distressed homes on the US market to 45. While this number declined for the second straight quarter, it only marks a two-month improvement since 2Q11 and is still three months longer .......

    News Round-up 23 November 2011

  • Euro RMBS default rates to remain suppressed

    While downgraded European countries have seen unemployment rates jump sharply over the last three years, a similar leap in RMBS pool default rates has failed to emerge, according to Moody's. The agency expects that existing public and private sector measures, the recourse nature of mortgages, the low interest rate environment and tighter underwriting practices will continue to suppress European RMBS .......

    News Round-up 22 November 2011

  • UK borrower scenario analysis completed

    The credit performance of UK mortgage borrowers could deteriorate in a wide range of economic scenarios, according to a recent S&P scenario analysis report. Such scenarios include not only a renewed recession, but also a stronger recovery accompanied by rising interest rates.

    UK mortgage arrears and repossession rates have declined modestly since mid-2009, but some market participants have questioned whether .......

    News Round-up 22 November 2011

  • Ambac extends reorg voting deadline

    Ambac Financial has extended the voting deadline for its Second Amended Plan of Reorganisation until 4 January 2012. The monoline says this is in order to provide holders of claims against it with additional time to review the terms of any proposed settlement with the US Treasury - Internal Revenue Service. In addition, the Plan objection deadline has been extended .......

    News Round-up 22 November 2011

  • Aussie covered bond, RMBS issuers to diverge

    Moody's says that higher-rated (Aa range) banks in Australia will likely prefer issuing covered bonds rather than RMBS, while most lower-rated banks (below Aa range) will continue issuing RMBS.

    The agency explains that the discussion paper on Basel 3 liquidity reforms released on 16 November by the Australian Prudential Regulation Authority (APRA) gives impetus for banks to buy covered bonds .......

    News Round-up 22 November 2011

  • BOI tender offers announced

    The Bank of Ireland has announced tender offers for up to €1bn-equivalent, or 30% of the total outstanding amount, of Kildare Securities and Brunel Residential Mortgage Securitisation No.1. The move is aimed at providing liquidity to investors following the bank's decision not to call either deal on its step-up dates in March and April 2012.

    The pricing for each note .......

    News Round-up 21 November 2011

  • MBS funds merged

    The Helios Strategic Mortgage Income Fund (HSM) has been merged into the Helios Total Return Fund (HTR), with the aim of providing enhanced investment flexibility for HSM shareholders. The funds' manager, Brookfield Investment Management, says that the investment guidelines for HTR - particularly its minimum ratings requirements for investments and ability to use a broader array of investment instruments - .......

    News Round-up 21 November 2011

  • REO business acquired

    Clayton Holdings has agreed to purchase Green River Capital. Green River, which provides REO, short sale and broker price opinion (BPO) services, will become a wholly owned subsidiary of Clayton, operating as a standalone business under its current brand and led by its current management team.

    Christopher West, Green River founder and ceo, and Paul Bossidy, Clayton ceo, will become .......

    Job Swaps 21 November 2011

  • Aussie RMBS resilience highlighted

    Triple-A rated classes of prime Australian RMBS are mostly resilient to moderate hypothetical downgrades of lenders' mortgage insurers, but ratings on most double-A minus classes of notes are more vulnerable, according to S&P.

    Australian prime RMBS have historically relied on lenders' mortgage insurance (LMI) as the main form of credit support. Deterioration in the financial strength of LMI providers or .......

    News Round-up 18 November 2011

  • Freddie targets reinstated loans

    Freddie Mac is to begin securitising certain mortgage loans that were previously delinquent and that the company has purchased from its related mortgage participation certificate (PC) pools. These mortgage loans have been reinstated to current, performing status and have not been modified.

    Beginning this month, these reinstated loans - which the GSE holds in its mortgage-related investment portfolio - will .......

    News Round-up 18 November 2011

  • Resi cumulative defaults stabilising

    Cumulative defaults for US residential mortgage loans continued to show signs of stabilising in 3Q11, according to S&P. While loans originated in 2006 and 2007 are still the worst performers, 2006-vintage mortgages have the highest cumulative default rates.

    S&P's cumulative default metric aggregates two types of defaults: active and closed. While active defaults comprise seriously delinquent loans for which the .......

    News Round-up 16 November 2011

  • HARP 2.0 implementation details released

    Fannie Mae and Freddie Mac have released key implementation details for the revised HARP programme (SCI 26 October), in line with market expectations. The biggest source of uncertainty about the initiative ahead of the announcement was the extent of rep-and-warranty relief, with this now seemingly clarified.

    Overall the changes represent a moderate easing in reps and warranties for FHLMC, according .......

    News Round-up 16 November 2011

  • Sustainable home price model debuts

    Fitch has launched a quarterly report detailing its US home price projections, based on the results of its sustainable home price (SHP) model. The inaugural study contains projections as of 2Q11.

    Fitch expects home prices to fall by an additional 13% nationally in real terms. The agency notes that the housing market remains under stress from factors such as unemployment, .......

    News Round-up 15 November 2011

  • NCUA settlements reached

    The NCUA has reached settlements with Citi and Deutsche Bank regarding potential claims relating to the sale of RMBS to five failed wholesale credit unions. The two banks have agreed to pay NCUA US$20.5m and US$145m respectively to reduce the losses associated with the five credit union failures. Neither settlement admits fault on the part of Citi and Deutsche.

    NCUA .......

    Job Swaps 15 November 2011

  • RMBS pro recruited

    Bill Twombly has joined Risk Management Group as md of its due diligence practice, replacing Dante Jackson. Twombly will be responsible for setting the strategic direction of the practice, as well as overseeing RMG's Phoenix operations centre. He has over 25 years of experience in the real estate and mortgage finance industry and was most recently head of due diligence .......

    Job Swaps 14 November 2011

  • Bank monoline losses updated

    An ISDA study as part of its examination of losses incurred in the US banking system due to counterparty defaults on OTC derivatives has found the counterparty credit risk exposure of 12 US bank holding companies and international banking companies to monoline insurers has led to US$54bn in bank write-downs since 2007.

    ISDA's study follows an earlier paper based on .......

    News Round-up 10 November 2011

  • Aussie act 'could be credit negative'

    The Australian Personal Property Securities Act 2009 (PPSA), due to take effect around February 2012, could be credit negative for transactions parties, warns Moody's. The PPSA will replace 70 state and federal acts as well as eliminating more than 30 individual securities registers and apply to a host of securitised assets and structures.

    "It is going to broaden the purview .......

    News Round-up 10 November 2011

  • Euro ABS trader hired

    Paolo Binarelli has joined Banca IMI's securitised products and loan trading desk in Milan, headed by Roberto Lucchini. In his new role, he will trade ABS and MBS.

    Binarelli previously worked as a portfolio manager at P&G SGR Alternative Investments.

    .......

    Job Swaps 9 November 2011

  • US SF losses 'surprising'

    Losses are high in the most maligned US structured finance sectors, but surprisingly low in other segments, says Fitch. By far the most losses are being seen in RMBS and CDOs, although consumer ABS has performed well.

    Fitch says RMBS and related structured finance CDOs have the most realised and expected future credit losses, while consumer ABS products such as .......

    News Round-up 9 November 2011

  • Foreclosure start rates rising

    Foreclosure start rates on delinquent US mortgages are rising toward historical averages one year after industry-wide deficiencies were revealed in foreclosure procedures, according to the latest RMBS Performance Metrics report from Fitch.

    According to Fitch, an increase to more normalised foreclosure initiation rates will ultimately add to the inventory of distressed properties on the market. This will in turn increase .......

    News Round-up 8 November 2011
×