RMBS

  • Flex mod programme 'credit neutral'

    The Flex modification programme announced by Fannie Mae and Freddie Mac last week (SCI 15 December) will have a neutral credit impact on the GSEs' credit risk transfer securitisations, says Moody's. The rating agency believes the volume of modifications and re-default performance under the Flex programme will be comparable to current levels and performance.

    The Flex programme has a formal .......

    News Round-up 23 December 2016

  • DOJ files suit, agrees settlements

    The US Department of Justice has filed a civil complaint in the Eastern District of New York against Barclays Bank and several of its US affiliates, alleging that the bank engaged in a fraudulent scheme to sell RMBS supported by defective and misrepresented mortgage loans. Separately, Credit Suisse and Deutsche Bank have reached settlements in principle with the DOJ in .......

    Job Swaps 23 December 2016

  • ED appoints new ceo

    The European DataWarehouse (ED) has appointed Christian Thun as ceo, effective from 1 January 2017. He joined ED a year ago as coo (SCI 4 January) and has been responsible for leading data management, customer account management and research.

    Prior to joining ED, Thun spent 14 years at Moody's Analytics. He has also worked for Baetge & Partner and for .......

    Job Swaps 21 December 2016

  • Primary servicing volumes up

    In its latest quarterly US RMBS Servicer Handbook, Fitch highlights the rapid growth of portfolios among smaller mortgage servicing companies. The portfolios of US special servicers with loan counts of less than 400,000 are growing at a faster pace than the servicing industry as a whole, according to the agency.

    These smaller special servicers reported an average year-over-year growth of .......

    News Round-up 21 December 2016

  • Strong due diligence in place

    With the exception of a few isolated outliers, strong due diligence is firmly in place for most post-crisis US RMBS, according to Fitch in its inaugural report on third-party review (TPR) firms that perform RMBS due diligence. The agency's review - which encompassed over 100,000 loans from across 92 securitised deals - demonstrated exceptional results so far for loans originated .......

    News Round-up 20 December 2016

  • FHFA scorecard goals published

    The FHFA has released its 2017 scorecard for Fannie Mae, Freddie Mac and Common Securitization Solutions (CSS). The scorecard furthers the FHFA's aims of maintain credit availability, reducing taxpayer risk and building a new single-family securitisation infrastructure for the GSEs.

    For the Common Securitization Platform (CSP) and Single Security, which remain high priorities, the FHFA expects the GSEs and CSS .......

    News Round-up 16 December 2016

  • Freddie debuts re-performing deal

    Freddie Mac is marketing its first credit risk transfer RMBS backed by seasoned re-performing loans - the US$943.52m Freddie Mac Seasoned Credit Risk Transfer Trust 2016-1. The collateral - comprising 4,097 loans - was either purchased by Freddie Mac from securitised Freddie Mac Participation Certificates or retained by the GSE in whole loan form.

    The portfolio contains 100% modified loans. .......

    News Round-up 16 December 2016

  • Non-QM market 'maturing'

    Caliber Home Loans has closed the US$225.75m COLT 2016-3 Mortgage Loan Trust, the first post-crisis non-QM RMBS to feature a triple-A rated tranche. The transaction is backed by 474 fixed- and adjustable-rate prime and non-prime first-lien residential mortgages.

    Fitch notes that it has become more comfortable with the operational risk of the issuer through extensive due diligence results, multiple on-site .......

    News Round-up 16 December 2016

  • Comfort zone

    Investor interest in SFR muted, despite potential

    A backdrop of declining homeownership in the US and a growing number of renters is driving growth in the single-family rental (SFR) securitisation market. However, limited volume, call risk and operational issues mean that the sector can be overlooked by investors, who remain more comfortable with RMBS and CMBS.

    Earlier in the year Morgan Stanley RMBS analysts highlighted that the .......

    News Analysis 16 December 2016

  • 'Mixed effects' from rate hikes

    The US Federal Reserve has raised interest rates from 0.25% to a range of 0.50%-0.75%, which will have varied implications for structured finance, according to Moody's. The rating agency adds that it expects the Fed to raise rates three more times in 2017 to 1.25%-1.50% year-end.

    Moody's comments that US consumers are generally "well-positioned to cope with rising debt expenses .......

    News Round-up 15 December 2016

  • GSEs introduce new mod programme

    Fannie Mae and Freddie Mac will each offer a new flex modification programme to replace their versions of HAMP, which is set to expire at the end of this year. The GSEs developed the flex modification programme in alignment with each other and at the direction of the FHFA.

    The flex modification programme is expected to provide a 20% payment .......

    News Round-up 15 December 2016

  • ABSPP external managers cut

    The ECB's governing council has decided that the ABSPP should now be fully implemented by national central banks, rather than relying on the support of external managers. This is a change which was planned when the programme was first launched.

    As of 1 April 2017, Nationale Bank van België/Banque Nationale de Belgique, Deutsche Bundesbank, Banco de España, Banque de France, .......

    News Round-up 15 December 2016

  • Euro issuance drops

    €40.2bn of securitised product was issued in Europe in 3Q16, according to AFME's latest securitisation data report. This represents a decline of 46.5% from 2Q16 (€75bn) and a decline of 30.3% from 3Q15 (€57.6bn).

    Of the €40.2bn issued, €16bn was placed (representing 39.8% of issuance), compared to €29.3bn placed in 2Q16 (representing 39.1%) and €18.6bn placed in 3Q15 (representing 32.3%). .......

    News Round-up 15 December 2016

  • Euro secondary unmoved

    The Fed's announcement yesterday appears to have had little effect so far as the European securitisation secondary market resolutely sticks to recent patterns.

    There continue to be pockets of activity across the ABS/MBS secondary market. Tone generally remains positive and spreads unchanged with the exception of Portuguese paper, which continues to edge wider.

    However, CLOs are busier in comparison with .......

    SCIWire 15 December 2016

  • Executive promotions inked

    PennyMac Mortgage Investment Trust has announced changes in the roles of six executive officers in conjunction with organisational changes at PennyMac Financial Services, its manager and service provider. The changes are effective from 1 January 2017.

    Under the reorganisation, chairman and ceo Stanford Kurland will assume the role of executive chairman, while executive md, president and coo David Spector will .......

    Job Swaps 14 December 2016

  • LatAm markets 'will rebound'

    Donald Trump's election victory has implications far beyond the US, not least in Mexico, where potential US policy changes will weigh on economic growth. Mexican RMBS should remain steady, however, while Moody's believes Argentina and Brazil are set to return to growth in 2017, helping to support the credit quality of assets backing securitisations in those countries.

    The Mexican RMBS .......

    News Round-up 14 December 2016

  • Solutions group formed

    CST Trust Company has entered the Canadian custody market as a National Housing Act (NHA) MBS custodian and title custodian, following its qualification last week by the Canada Mortgage Housing Corporation (CMHC). As the first new entrant to the market in 30 years, CST aims to transform the documentation and tracking processes around Canada's NHA MBS programme through state-of-the-art technology .......

    Job Swaps 14 December 2016

  • Inaugural online RMBS prepped

    SoFi is in the market with its inaugural RMBS transaction, dubbed SoFi Mortgage Trust 2016-1. The US$168.79m deal comprises 36 classes of mortgage-pass through certificates backed by prime jumbo mortgage loans originated via SoFi's online lending platform.

    Fitch and KBRA have issued preliminary ratings on the transaction, with both agencies rating the US$84.11m class 1A6, the US$28.03m class 1A8, the US$11.81m .......

    News 13 December 2016

  • Swapless Dutch RMBS concerns raised

    Dutch RMBS featuring a partial interest rate hedge will face increased risk of interest rate shortfalls in the coming years if prepayments fall, says Moody's. The low interest rate environment over the last few years has led to a steady decrease in average mortgage portfolio interest yields, while rising interest rates in the future will put downward pressure on prepayment .......

    News Round-up 13 December 2016

  • Liquidation timelines 'declining'

    Liquidation timelines on defaulted US mortgage loans appear to have peaked, Fitch comments. While the rating agency expects loss severities to decrease and timelines to shorten, it doesn't expect a rise in ratings on RMBS, as these changes are already reflected in the firm's analysis.

    Timelines topped out at four years earlier in 2016 and have begun to decline, with .......

    News Round-up 13 December 2016

  • Euro ABS/MBS ticks over

    The European ABS/MBS secondary market continues to tick over.

    As with the previous week it's been a solid if unspectacular start to this. BWICs continue to drive the action and trade well. For now, sentiment remains positive, albeit with some softening of tone in weaker peripherals, especially Portuguese names.

    There are currently three BWICs on the European ABS/MBS schedule for .......

    SCIWire 13 December 2016
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