RMBS

  • NCUA files first misrepresentation suits

    The National Credit Union Administration has filed suits against JPMorgan and RBS, alleging violations of federal and state securities laws and misrepresentations in the sale of RMBS. Additional law suits may follow in order to recover losses from the purchase of securities that caused the failures of five large wholesale credit unions.

    As liquidating agent for the failed corporate credit .......

    Job Swaps 21 June 2011

  • MIAC acquisition completed

    Radian Asset Assurance has completed the acquisition of Municipal and Infrastructure Assurance Corporation (MIAC), following approval from the New York State Insurance Department. The purchase price of US$82m is US$7m above the value of MIAC's statutory capital base.

    Radian signed an agreement of purchase on 1 February 2011 for MIAC, a New York-domiciled financial guaranty insurance company. MIAC has not .......

    Job Swaps 20 June 2011

  • Second Walter deal prints

    Walter Investment Management has closed its second privately placed RMBS of the year (SCI 1 June) - the US$102m WIMC 2011-1. The notes are backed by US residential mortgage loans, building and installment sale contracts, promissory notes, related mortgages and other security agreements.

    The purpose of the offering is to raise capital to fund the firm's previously announced acquisition of .......

    News Round-up 20 June 2011

  • Greek performance still sliding

    Greek ABS and RMBS market performance continued to deteriorate in April, according to Moody's latest index data. ABS SME transactions saw cumulative defaults rise from 1.73% to 2.98% in a year. Consumer loans rose even higher, from 3.86% to 7.45%.

    RMBS 90-day plus delinquencies rose from 0.7% to 1.97% between April 2010 and April 2011. Cumulative defaults more than doubled .......

    News Round-up 17 June 2011

  • Foreign appetite for agency MBS drops

    The latest US Treasury International Capital (TIC) flows data indicates that overseas holdings of agency MBS dropped by US$3.5bn in April. Net purchases (excluding paydowns) were US$6.7bn and paydowns were US$10.2bn.

    "The broad theme remains the same," say MBS analysts at Bank of America Merrill Lynch. "Overseas purchases of agency MBS are not keeping up with paydowns in their agency .......

    News Round-up 16 June 2011

  • APAC ABS ratings less volatile

    Fitch Ratings says in a new special report that Asia-Pacific structured finance (SF) ratings were considerably less volatile in 2010 than in the previous year. The total number of rating changes in 2010 was 76, down from 173 in 2009.

    "The performance of SF in Asia-Pacific was less volatile in 2010 than in 2009, with stable economies in most regions .......

    News Round-up 14 June 2011

  • Servicer op risk ratings hit

    Fitch has downgraded the operational risk ratings of nine US residential mortgage servicers, following its November 2010 assignment of a negative outlook to the sector. Reasons for the rating actions include the growing burden of managing delinquent and defaulted mortgages in an environment of heightened regulatory scrutiny. Also factored into the downgrades were the increased areas of risk identified by .......

    News Round-up 13 June 2011

  • RMBS master trust restructurings proposed

    Lloyds Banking Group is proposing to restructure the Arkle, Mound, Pendeford and Permanent (both Funding 1 and Funding 2) RMBS master trusts, subject to noteholder approval. This is expected to occur during July.

    Under the restructuring, the support provided by the reserve funds in all four trusts will be replaced with a subordinated class Z loan. For the Arkle and .......

    News Round-up 10 June 2011

  • Call for transparency around Spanish foreclosures

    Fitch believes that the relatively small number of repossessed properties and the low level of modified loans within its rated universe of 137 Spanish RMBS is due to originator support.

    "Fitch notes that there is a significant difference in the total number of repossessed properties across transactions which share similarities in terms of seasoning and performance, depending on the fund .......

    News Round-up 10 June 2011

  • Price uplift seen in Celtic tender

    Ulster Bank Ireland is to accept about €1.1bn of notes from its Celtic 9, 10, 11 and 12 Irish RMBS transactions, following the tender offer it announced last month (SCI 24 May). The final purchase prices for many of the bonds were significantly higher than the minimum purchase prices announced in the offer memo, by an average of 5.7 points .......

    News Round-up 9 June 2011

  • Subprime price increase doubles

    US subprime CDS prices have more than doubled their increase from last month, extending the rally to an unprecedented seventh straight month, according to the latest index results from Fitch Solutions.

    Subprime CDS prices rose by 1.7% overall, though price increases were not uniform across vintages. The headline index price increase was delivered by the 2007 vintage's 4.9% gain and .......

    News Round-up 9 June 2011

  • RFC issued on Aussie RMBS criteria

    Fitch has published an exposure draft on its Australian RMBS rating criteria with proposed key changes. While the sector has performed well during a period of global stress, the agency believes it was appropriate to undertake a detailed review of its current Australian RMBS criteria, given the substantial increase in household leverage and property price gains that have occurred in .......

    News Round-up 8 June 2011

  • EMEA RMBS loss criteria updated

    Fitch has published a master criteria report detailing its rating methodology for assessing credit risk in RMBS transactions in EMEA. The criteria summarises the agency's existing analytical framework for both assigning a rating for the first time and monitoring existing ratings.

    The agency has also updated its EMEA residential mortgage loss criteria. The fundamental residential mortgage loss and cashflow modelling .......

    News Round-up 8 June 2011

  • New mortgage servicer rules imposed

    Fannie Mae has issued new standards for mortgage servicers under the Federal Housing Finance Agency's servicing alignment initiative. The new standards address the management of delinquent loans, default prevention and foreclosure timeframes. It also aims to reinforce new incentives and compensatory fees, requiring servicers to take a more consistent approach for homeowner communications, loan modifications and other workouts and, when .......

    News Round-up 8 June 2011

  • Bank fined for CMO deficiencies

    FINRA has fined Northern Trust Securities US$6m for deficiencies in supervising sales of CMOs and using inadequate systems to monitor certain high-volume securities trades.

    FINRA found that from October 2006 to October 2009, Northern Trust failed to monitor customer accounts for potentially unsuitable levels of concentration in CMOs. This was mainly because it used an exception reporting system that failed to .......

    Job Swaps 3 June 2011

  • Treasury MBS portfolio buyers revealed

    The US Treasury has updated the market on the continued orderly wind down of its agency-guaranteed MBS portfolio. During the period from March to May, the Treasury sold US$23.68bn in face value of its holdings across 118 trades.

    As a result, taxpayers have received a cumulative total of US$133.8bn in proceeds from this investment through sales by Treasury, as well .......

    News Round-up 2 June 2011

  • Performance analytics pro moves on

    Opera Solutions has appointed Jonathan Di Giambattista as vp of product management for its global markets analytics group. Di Giambattista will spearhead the strategy and development of capital markets products, while also piloting market strategies, beginning with the firm's portfolio valuation and risk platform Mobiuss/RMBS.

    Di Giambattista was previously md and global head of risk and performance analytics for Fitch .......

    Job Swaps 2 June 2011

  • MBIA policyholder ruling awaited

    A decision in the MBIA policyholders fraudulent conveyance case is expected in the next several weeks, following yesterday's Court of Appeals hearing in Albany (SCI passim). Robert Giuffra, lead counsel for the policyholders and a partner with Sullivan & Cromwell, told the court that approval of MBIA's controversial restructuring by the New York Insurance Department (NYID) should not deny policyholders .......

    Job Swaps 1 June 2011

  • Second private RMBS tranche placed

    Walter Investment Management has privately placed approximately US$81m of class B RMBS notes issued by Mid-State Capital Trust 2010-1. The firm closed the class A notes in November (see SCI 16 November 2010). The deal is backed by US residential mortgage loans, building and instalment sales contracts, promissory notes, related mortgages and other security agreements.

    Walter Investment expects to receive .......

    News Round-up 1 June 2011

  • Further woes for Greek SF

    Fitch has downgraded 38 tranches (35 RMBS and three ABS) of 16 Greek SF transactions (comprising 13 RMBS and three ABS). Further, all Greek tranches have been placed on rating watch negative (RWN).

    The rating actions follow the agency's downgrade of Greece's long-term foreign and local currency issuer default ratings (IDRs) to single-B plus and placement on RWN from double-B .......

    News Round-up 31 May 2011

  • Aussie RMBS delinquencies reach record high

    Fitch reports that 30+ day delinquencies in the Australian prime RMBS sector reached a record high of 1.79% in 1Q11, up by 42bp from 4Q10. Christmas spending, the Queensland floods and the November 2010 interest rate rise all adversely impacted borrowers' serviceability, the agency says.

    Fitch believes the factors that have impacted mortgage performance in 1Q11 will be more or .......

    News Round-up 26 May 2011
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