RMBS

  • Morgan Stanley begins RMBS payments

    Morgan Stanley has begun fulfilling its consumer relief obligations under the terms of its settlement with New York State (SCI 12 February). The settlement concerns failed RMBS sold in the lead-up to the financial crisis.

    Under the terms of the settlement, Morgan Stanley will pay US$550m - including consumer relief of US$400m - to be distributed by the end of September 2019. .......

    News Round-up 11 August 2016

  • Investors rally to Ocwen

    RMBS investors in deals serviced by Ocwen are holding meetings in the wake of the publication of an open letter from United Capital Markets ceo John Devaney to S&P. The letter and investors argue that Ocwen has outperformed its peers and that any transfer of servicing away from Ocwen would be seriously detrimental, strongly criticising Gibbs & Bruns for pursuing .......

    News 10 August 2016

  • Investment property underwriting eyed

    Investment property mortgages underwritten to property cashflows pose unique risks relative to similar loans underwritten to borrower personal income, Moody's notes. However, the agency adds that they also have distinct potential strengths.

    Some lenders are originating mortgages secured by individual single-family rental (SFR) properties using underwriting based on mortgage payments relative to property-level rental incomes - property debt-to-income ratios - .......

    News Round-up 10 August 2016

  • MI cancellation rates examined

    Mortgage insurance (MI) cancellation rates across GSE credit risk transfer (CRT) RMBS remain low, according to a new KBRA analysis. The agency suggests that this could be due to limited loan seasoning, given the sector's short history.

    Nevertheless, KBRA expects MI cancellation rates to occur sooner and at higher rates where significant home price appreciation (HPA) has been or will .......

    News Round-up 10 August 2016

  • MSR partnership inked

    New Residential Investment Corp and Walter Investment Management Corp have entered into a strategic partnership, encompassing MSR purchase and sale agreements, as well as a forward flow arrangement. The move is designed to help both firms achieve their shared objectives of growth and improved earnings with lower risk.

    Under the agreement, New Residential is set to purchase from Walter approximately .......

    Job Swaps 10 August 2016

  • CFPB issues final rule on servicing

    The CFPB has amended its mortgage servicing rules to ensure mortgage servicers treat homeowners and struggling borrowers fairly. It is also issuing an interpretive rule under the Fair Debt Collection Practices Act relating to servicers' compliance with certain mortgage servicing provisions as amended by the final rule.

    The CFPB introduced common-sense rules for servicers in January 2014 (SCI 20 January .......

    News Round-up 8 August 2016

  • MSR pro picked up

    Incenter has hired capital markets expert Al Qureshi as md, analytics, to build upon its existing mortgage servicing rights analytics platform. He arrives from US Bank, where he was head of mortgage servicing hedging and hedging analytics. Qureshi joins a platform that was purchased as Interactive Mortgage Advisors and rebranded earlier this year.  

    .......

    Job Swaps 8 August 2016

  • REIT reduces RMBS footprint

    Five Oaks Investment Corp disclosed in its latest 8K filing that it has reduced the aggregate capacity of its repurchase agreement for the financing of residential mortgage loans with Barclays from US$150m to US$25m. The move is part of the REIT's plans to revise significantly its prime jumbo business, effective from 1 August.

    Specifically, for the foreseeable future, Five Oaks .......

    News Round-up 5 August 2016

  • MBS vet joins Nathan Hale

    Nathan Hale Capital has boosted its capital markets division with the appointment of Kurt Weisenfluh. He is tasked with expanding the firm's presence in the RMBS market.

    Weisenfluh has more than 25 years of industry experience and was previously a risk management consultant for Newbold Advisors. He has also worked as md for BlackRock, head of mortgage trading for Barclays .......

    Job Swaps 5 August 2016

  • RMBS compare tool debuts

    Fitch has introduced a data comparison tool for US RMBS, which encapsulates all of its US residential mortgage transactions issued since the start of 2012. The tool allows users to compare key credit attributes across transactions and issuers in an Excel format.

    Transactions that are included in the report are US RMBS, GSE credit risk-sharing transactions and re-performing loan deals. .......

    News Round-up 5 August 2016

  • COLT confidence

    Rated non-prime RMBS shifts market dynamics

    The issuance of Lone Star Fund's COLT 2016-1 in June marked a turning point for the US non-prime RMBS space, as the deal was the first of its kind to be rated post-financial crisis (SCI 10 June). The sector still faces a number of hurdles, but the transaction has sparked optimism that more could soon follow.

    "[COLT 2016-1] is still .......

    News Analysis 5 August 2016

  • Demand expected for jumbo Hawksmoor

    Initial price thoughts have been released for the first post-Brexit UK non-conforming RMBS, Hawksmoor Mortgages 2016-1. At an expected £2.25bn, the deal is also noteworthy for its size, especially given the August print.

    Hawksmoor 2016-1 is backed by a pool of first-ranking owner-occupied and buy-to-let non-conforming loans, secured by properties in England, Wales, Scotland and Northern Ireland. GE Money Home .......

    News 4 August 2016

  • Spanish NPL portfolios purchased

    Bain Capital has acquired three Spanish NPL portfolios for €1.15bn, extending the firm's holdings to six Spanish portfolios. The purchases include a €415m pool from Banco Sabadell, which comprises defaulted first-lien bilateral Spanish loans to real estate developers, primarily secured on residential and commercial real estate assets.

    The largest purchase is a €511m portfolio from Grupo Cooperativo Cajamar, which holds .......

    News Round-up 4 August 2016

  • PACE acceptance is 'ABS positive'

    The Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) are to being to insure mortgages on homes encumbered by PACE obligations that meet certain requirements. Moody's believes the FHA's acceptance of PACE is credit positive for PACE ABS and will have mixed effects on RMBS.

    This is the first time that federal agencies involved in the US mortgage .......

    News Round-up 3 August 2016

  • Condominium price surge 'positive'

    Moody's says that rising condominium prices is positive for Japanese RMBS as it will increase recovery rates on transactions backed by investment loans. The average price of studio type condominiums in the Tokyo metropolitan area has increased to the highest level since 1995.

    These properties in the Japanese capital comprise between 60% to 70% of the collateral backing condominium loan RMBS in .......

    News Round-up 3 August 2016

  • RFC issued on PO strip ratings

    S&P is requesting comments on its proposed approach for the surveillance of ratings on US RMBS principal-only (PO) strip securities backed by pre-2009 originated mortgages. No rating impacts are expected if the criteria were to come into place as outlined.

    Historically, PO securities have been structured in various forms, with one such variety backed by discount mortgage loans whose coupons yield less .......

    News Round-up 3 August 2016

  • Aussie metrics approach crisis levels

    Delinquencies for Australian auto loan ABS and prime RMBS have risen steadily over the five months to May 2016, as well as year-on-year, notes Moody's. The auto loan delinquency rate is now similar to levels seen in 2009 and is edging towards its 2010 peak.

    For auto loan ABS, 30-plus day delinquencies worsened from 1.35% in January to 1.66% in .......

    News Round-up 3 August 2016

  • Pay-outs prompt potential upgrades

    S&P has placed 310 classes from 111 US RMBS deals on credit watch with positive implications. The transactions were all issued between 2004 and 2006, and reflect a potential increase in credit support to payments due as a result of Bank of America's US$8.5bn settlement with certain Countrywide RMBS investors (SCI passim).

    Following an order from the New York Supreme .......

    News Round-up 2 August 2016

  • Loss risk improves for GSE CRTs

    Expected mortgage losses on seasoned GSE CRT transactions are trending positively, says Fitch. The loss projections are driven by strong loan performance to date, a shorter loss exposure window until deal maturity and steady home price growth.

    Coupled with bond deleveraging, the improvement in projected pool losses has resulted in positive rating momentum for the rated classes. Fitch has upgraded .......

    News Round-up 2 August 2016

  • REIT cuts securitisation business

    The board of directors of Two Harbors Investment Corp has approved a plan to discontinue the company's mortgage loan conduit and securitisation business, with the wind-down process expected to be substantially completed this year. The decision has been taken as a result of challenging market conditions and an intention to reduce operating complexity and costs.

    "I am extremely proud of .......

    Job Swaps 29 July 2016

  • Korean issuance slows down

    South Korean ABS issuance in 1H16 was down year-on-year by 43.9%, with a total figure of just Won27trn. According to the country's Financial Supervisory Service (FSS), the decline from Won48.2trn a year earlier was due to the Korea Housing Finance Corporation (KHFC) scaling back on its MBS issuance.

    The KHFC issued Won14.6trn for the first half of the year, down .......

    News Round-up 29 July 2016
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