RMBS

  • Sequoia prices with stronger structure

    Redwood Trust has priced Sequoia Mortgage Trust 2011-1 - the first US non-agency RMBS of the year - via Credit Suisse, Jefferies and JPMorgan. The US$270m triple-A rated (by Fitch) class A-1 notes priced at 4.125%. The offering is expected to close on 1 March.

    The deal is backed by a US$296m pool of 303 prime mortgages consisting of 43% .......

    News Round-up 18 February 2011

  • Restructuring proposed for Sentry MBS fund

    Sentry Select Capital is proposing to restructure the Sentry Select MBS Adjustable Rate Income Fund II to allow it to be administered as an open-end mutual fund - including daily liquidity at the net asset value per unit. If the fund is restructured, the structure of the management fees paid by the fund to the manager would also be changed; .......

    News Round-up 18 February 2011

  • Moody's warns on Redwood earthquake risk

    Investors in the new Redwood Trust RMBS should consider the risk posed by the underlying concentration of earthquake-vulnerable properties, warns Moody's.

    "Based on preliminary information on the Sequoia Mortgage Trust 2011-1 transaction, we believe that the pool is more exposed to earthquake risk than most RMBS pools, given that 56% of the loans by principal balance are in California and .......

    News Round-up 18 February 2011

  • Real estate fund acquisition agreed

    ING has reached an agreement to sell the majority of its ING Real Estate Investment Management (ING REIM) business in two separate transactions for a combined price of approximately US$1bn. In addition, as part of the transactions, ING has agreed to sell up to approximately US$100m of its equity interest in existing ING REIM funds.

    CB Richard Ellis Group is .......

    Job Swaps 17 February 2011

  • Genworth review hits Aussie RMBS

    Moody's has placed on review for possible downgrade 81 tranches from 78 Australian RMBS. The review was prompted by the placement on review for possible downgrade of Genworth Financial Mortgage Insurance.

    The review affects Australian term RMBS rated by Moody's containing mortgage loans insured by Genworth. Most of the notes placed on review for possible downgrade are junior, the ratings .......

    News Round-up 16 February 2011

  • Housing reform proposals positive for RMBS

    The Obama Administration's report to Congress aimed at reforming the US housing market (see SCI 11 February) contains key positions that affect both Fannie Mae and Freddie Mac, as well as the mortgage markets as a whole, according to Fitch.

    Specifically related to Fannie and Freddie, the report states that: "The government is committed to ensuring that Fannie and Freddie .......

    News Round-up 15 February 2011

  • Mortgage servicing revisited

    CRE special servicer-style model touted for RMBS

    The FHFA's initiative to restructure the GSE mortgage servicing model (see SCI 19 January) has re-energised debate on servicer compensation. While there is agreement that the current system has many shortcomings, some believe that the proposed changes don't go far enough.

    Ron D'Vari, ceo of NewOak Capital, says the issue at stake is how to incentivise servicers to do a .......

    News Analysis 15 February 2011

  • IndyMac execs charged with fraud

    The US SEC has charged three former senior executives at IndyMac Bancorp with securities fraud for misleading investors about the firm's deteriorating financial condition.

    The SEC alleges that former ceo Michael Perry and former cfos Scott Keys and Blair Abernathy participated in the filing of false and misleading disclosures about the financial stability of IndyMac and its main subsidiary, IndyMac .......

    Job Swaps 14 February 2011

  • Senior Irish RMBS targeted

    Moody's expects the top rated notes of Irish RMBS to suffer multi-notch downgrades due to rating actions on most of the Irish banks. Operational risk exposure is now the main consideration in determining the ultimate rating levels achievable in each transaction, it says.

    In particular, Moody's review will focus on the counterparties performing key roles, such as servicer, cash management, .......

    News Round-up 14 February 2011

  • Mexican RMBS performance to remain flat

    S&P expects the overall performance of the Mexican RMBS market to remain flat in 2011, as macroeconomic benefits begin to filter through. 2010 was the first year issuance decreased since the Mexican RMBS market's inception in 2003 - dropping 24% to US$2.37bn from US$3.13bn in 2009 - with only two credit institutions issuing nine RMBS transactions during the year.

    S&P .......

    News Round-up 14 February 2011

  • Report on housing reform released

    The Obama Administration has delivered its report on housing reform to Congress. The report outlines the Administration's plan to wind down Fannie Mae and Freddie Mac and shrink the government's current footprint in housing finance on a responsible timeline.

    The Administration recommends ending the capital advantages that the GSEs previously enjoyed by requiring them to price their guarantees as though .......

    News Round-up 11 February 2011

  • Agency debt vet recruited

    BMO Capital Markets has hired three senior fixed income professionals to continue the expansion of its global and US fixed income institutional sales and trading groups. One of them, John Valecce, joins as director of the firm's dealer sales desk, specialising in GSE debt.

    Based in New York, Valecce reports to Bill Kirby, head of US core rate sales in .......

    Job Swaps 11 February 2011

  • Data firm boosts management team

    Integrated Asset Services has appointed John Burnett as coo. Burnett brings more than 18 years of process management experience in REO, valuation, foreclosure, bankruptcy and loss mitigation. Prior to joining IAS, he held senior management roles at IBM-Lender Business Process Services, Wilshire Credit Corporation, Wells Fargo Bank and Washington Mutual Bank.

     

    .......

    Job Swaps 10 February 2011

  • Loan modifications only a short-term fix

    Loan modifications do not appear to be an effective way to permanently cure loan delinquencies, according to S&P. The agency's conclusion is based on a recent analysis of CoreLogic loan-level non-agency RMBS data comprising first-lien loans issued between 2000 and 2007 that were modified between 2007 and 2010.

    The analysis indicates that over one million non-agency loans were modified between .......

    News Round-up 8 February 2011

  • Legacy asset servicing unit formed

    Bank of America has formed a new unit, Legacy Asset Servicing, which will oversee the servicing all defaulted loans and discontinued residential mortgage products. Terry Laughlin will lead the unit and be responsible for the bank's mortgage modification and foreclosure programmes, as well as for resolving residential mortgage representation and warranties repurchase claims.

    At the same time, Bank of America .......

    Job Swaps 8 February 2011

  • Subpar loan mods driving foreclosure rates

    With loan modifications steadily declining, the emphasis is becoming less on whether a distressed US mortgage borrower is able to stay in their home and more on when the servicer will ultimately have to foreclose on it, says Fitch.

    Since the high watermark of 86,500 modifications in April 2009, loan modifications have steadily decreased, with 36,500 modifications completed in December .......

    News Round-up 7 February 2011

  • Agency MBS reviews released

    1010data and the ASF have published agency MBS market review reports, offering aggregated statistics for each GSE. Included in the reports is the new FHLMC delinquency disclosure data, as well as the previously available GNMA delinquency data aggregated at the cohort level. With buy-outs being a potentially important component of prepays, this data should help investors refine their prepayment expectations, .......

    Job Swaps 7 February 2011

  • Whole loan evaluations service prepped

    Interactive Data is set to launch a US whole loan evaluations service in the second quarter of this year. The offering will provide evaluated prices for residential whole loans based on observable inputs from the securities markets. It will cover both performing and non-performing whole loans, complementing the firm's current offerings related to securitised debt, including US agency pass-through securities, .......

    News Round-up 7 February 2011

  • Greek RMBS 'showing signs of deterioration'

    Fitch reports that the performance of Greek RMBS transactions has begun to show signs of deterioration, having previously been unaffected by the weakened economic conditions in the country. The agency highlights that although reported losses remain very limited, the proportion of loans in arrears for more than three months has increased rapidly to 2.6% in December 2010 from less than .......

    News Round-up 7 February 2011

  • Valuation forecasting system launched

    Altos Research has launched a forecasting tool dubbed AltosEvaluate Forward Valuation Modeling (FVM). The service tracks changes in a property's transaction price three, six or 12 months into the future based on the strength or weakness of any local real estate market, thus improving loan and pool level analytics for more precise asset pricing.

    Further, the forecasting system applies algorithms .......

    News Round-up 7 February 2011

  • NPL criteria explained

    Fitch has published its global rating criteria for non-performing loan securitisations. The agency's analysis of non-performing loan transactions is predicated on the level and timing of recoveries, from the disposition of residential and CRE-secured loans that are in default and/or properties that have been repossessed.

    Recoveries, which are stressed incrementally higher for each rating scenario, are the basis for the .......

    News Round-up 4 February 2011
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