RMBS

  • US RMBS foreclosure risks examined

    Moody's has released a report that examines four foreclosure-related risks that currently pose a threat to US RMBS.

    First is the issue of missing and defective documents in foreclosures, which presents the most serious risk to RMBS, according to the agency. "We expect the issue of missing and defective documents to arise frequently in foreclosures," says Yehudah Forster, Moody's vp .......

    News Round-up 16 November 2010

  • REIT closes private RMBS

    Walter Investment Management has privately placed US$135m RMBS notes issued by Mid-State Capital Trust 2010-1. The deal is backed by US residential mortgage loans, building and instalment sale contracts, promissory notes, related mortgages and other security agreements.

    The US$56m class A notes priced at 350bp over Libor, while the US$78m class M notes came at 525bp over. Both notes are .......

    News Round-up 16 November 2010

  • Portuguese downgrades raise counterparty flag

    Fitch says that the recent downgrades of several Portuguese banks will have an impact on two Portuguese RMBS, but is unlikely to affect 12 other RMBS and three Fitch-rated Portuguese SME CLOs. The affected banks are Banco BPI, Banco Espirito Santo, Millenium BCP and Banif.

    At present, Banco BPI and Banco Espirito Santo perform several counterparty roles, including hedging counterparties, .......

    News Round-up 12 November 2010

  • Ambac regulator's actions challenged

    The RMBS Policyholders Group has issued a statement saying that the bankruptcy filings of Ambac Financial Group (AFG) demonstrate clearly that the Wisconsin Office of the Commissioner of Insurance (OCI) failed in its statutory duty to protect policyholders of Ambac Assurance Corporation and "actively participated in an arrangement that will divert billions of dollars of tax attributes from the insurance .......

    News Round-up 12 November 2010

  • US subprime prices hold steady

    Fitch reports that US subprime prices held steady for the fourth month in a row, with two underperforming vintages showing signs of a rebound. While the agency's US Subprime RMBS Total Market Price Index stood at 9.82 at the end of October, a closer look reveals that the recent 2006 and 2007 vintages have evened out, following significant price declines .......

    News Round-up 11 November 2010

  • Bank adds trading heads

    BB&T Capital Markets has appointed Peter Faherty and Jim Maughan to its fixed income trading operation. With nearly 20 years of mortgage securities experience, Faherty joins the firm's New York office as head of mortgage securities trading. Maughan joins BB&T's Boca Raton's office as head of agency trading, bringing more than 20 years of experience to the firm's agency operations.

    .......

    Job Swaps 10 November 2010

  • GSE recapitalisation costs estimated

    The ultimate taxpayer cost to resolve Fannie Mae and Freddie Mac could reach US$280bn, including the US$148bn already invested, according to S&P. However, the agency estimates that this figure could swell to US$685bn with the establishment of a new entity to replace the two GSEs, which the government would initially capitalise.

    "It appears unlikely in our view that housing and .......

    News Round-up 9 November 2010

  • US mortgage default rates improving

    S&P reports that default rates among US residential mortgage loans continued to improve through 3Q10. However, the uncertain climate in the housing market highlights the possibility that conditions could deteriorate further, the agency says.

    "Monthly default rates improved the most among subprime and Alt-A loans, while prime default rates remained largely unchanged," says Diane Westerback, S&P's head of global surveillance .......

    News Round-up 8 November 2010

  • Loss assumptions updated on 14 UK RMBS

    Moody's has updated its loss assumptions for 14 UK non-conforming RMBS, but has taken no rating action in consideration of the sufficient levels of credit enhancement. The affected transactions are: Eurohome UK Mortgages 2007-2; Great Hall Mortgages No 1 Series 2006-01; Leek Finance 17, 18, 20 and 21; Mortgages No 7; RMAC 2005-NS1, 2005-NSP2, 2005-NS3 and 2005-NS4; ResLoC UK 2007-1; .......

    News Round-up 5 November 2010

  • US subprime servicer advances declining

    Further evidence of US mortgage servicers' more pessimistic view of recovery prospects is in the steadily declining rate of servicer advances on delinquent mortgage loans, according to Fitch's latest Performance Metrics results for the sector.

    Where mortgage servicers were advancing payments on over 90% of delinquent loans across all asset types during the market peak of 2006, the number has .......

    News Round-up 5 November 2010

  • Servicer ratings sector on negative outlook

    Fitch has assigned a negative outlook for the entire US residential mortgage servicer ratings sector on increased concerns surrounding alleged procedural defects in the judicial foreclosure process. This industry-wide issue will cause all servicers to be under increased scrutiny from a wide range of state and federal regulators, attorneys and GSEs, the agency says.

    Fitch's survey showed that approximately one-third .......

    News Round-up 4 November 2010

  • UK mortgage arrears hits North harder

    S&P's study of regional differences in UK mortgage arrears and borrowers' equity positions indicates that the recent recession hit borrowers in the North of the country harder than those in the South. Using data from approximately 1.5m loans backing UK prime RMBS, the agency found that the level of arrears among mortgage borrowers in the North was almost 25% higher .......

    News Round-up 4 November 2010

  • Irish RMBS restructurings affirmed

    Bank of Ireland has restructured its Colston 2-4 RMBS deals, originated under the Bristol & West and Bank of Ireland Home Mortgages brands, following its formation of a new UK bank - Bank of Ireland UK (BoIUK). Under the restructuring, certain assets were repurchased from all three transactions' pools and transferred to BoIUK.

    To reduce the size of the asset .......

    News Round-up 2 November 2010

  • Gracechurch master trust restructured

    Barclays Bank has restructured its RMBS master trust, Gracechurch Mortgage Financing. Moody's believes that the restructuring will not impact the current ratings assigned to any of the notes and that it is ratings positive.

    Under the restructuring, Barclays has made a refinancing contribution to repay all amounts currently outstanding on the Gracechurch Mortgage Financing Series 2009-1 notes, which it had .......

    News Round-up 2 November 2010

  • Foreclosure defects to prolong US housing correction

    Fitch expects the in-flux state of US mortgage foreclosures to increase an already high 'shadow' inventory and lengthen foreclosure delays, both of which may prolong the US housing correction. Liquidation timelines of non-performing loans are already at historical highs and, based on recent resolution trends, it would take over three years to clear the existing distressed mortgage inventory in the .......

    News Round-up 2 November 2010

  • Lawsuit filed over MBS fund deviation

    Klayman & Toskes (K&T) has filed a class action lawsuit against Charles Schwab on behalf of investors who purchased Schwab's Total Bond Market Fund. According to the suit, Charles Schwab caused the fund to deviate from its fundamental investment objective to track the Lehman Brothers US Aggregate Bond Index - specifically by investing a 25% of its portfolio in high .......

    Job Swaps 1 November 2010

  • Mandatory redemption for Dutch RMBS

    Moody's has withdrawn its rating on all notes issued by E-MAC NL 2003-II, due to the RMBS becoming subject to mandatory redemption. This was triggered by the failure to obtain rating confirmations from all rating agencies by 20 October 2010 - the put option date - as per the transaction documentation.

    The agency changed the direction of its ongoing rating .......

    News Round-up 29 October 2010

  • Debut NCUA deal closes, second prepped

    National Credit Union Administration (NCUA) is prepping its second resecuritisation - the US$2.82bn NGN 2010-R2. Its first such offering - NGN 2010-R1 - settled yesterday, 28 October.

    The US$3.28bn Senior Series I-A notes, which are backed primarily by senior floating-rate RMBS, printed at 45bp over one-month Libor, subject to a maximum note interest rate cap equal to 7% per annum. .......

    News Round-up 29 October 2010

  • Wells admits to affidavit irregularities

    Wells Fargo has submitted supplemental affidavits for approximately 55,000 foreclosures that are pending before courts in 23 judicial foreclosure states. The firm says the move continues its ongoing efforts to monitor and assess its foreclosure affidavit procedures by providing an additional level of caution and assurance.

    Wells identified instances where a final step in its processes relating to the execution .......

    News Round-up 29 October 2010

  • Law firm expands mortgage foreclosure team

    Nixon Peabody has expanded its mortgage finance and foreclosure team, offering additional resources to address clients' growing needs during the mortgage foreclosure crisis. The team advises clients on impending issues involving mortgage foreclosures and repurchase obligations as clients face bankruptcy and restructuring, litigation, government investigation and new regulatory enforcement, the firm says.

    .......

    Job Swaps 26 October 2010

  • Ambac rehab plan faces attack

    The RMBS Policyholders Group has commented on the Plan of Rehabilitation for the Segregated Account of Ambac Assurance Corporation, which recently filed by the Wisconsin Office of the Commissioner of Insurance (OCI) (SCI passim).

    The plan continues a disturbing pattern, the group says, of OCI favouring Ambac and its shareholder to the detriment of policyholders. The plan requires policyholders to .......

    Job Swaps 26 October 2010
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