RMBS

  • United Guaranty sale agreed

    Arch Capital Group is set to acquire United Guaranty Corporation and United Guaranty Insurance from AIG for US$3.4bn. The sale will see the firms combine their businesses to create the largest private mortgage insurer in the world, based on insurance in-force.

    Arch says that it expects to retain a significant presence in North Carolina, while maintaining its existing mortgage insurance operations .......

    Job Swaps 16 August 2016

  • Chinese RMBS approach published

    Moody's has published its approach to rating Chinese RMBS using the MILAN framework. The agency will use the approach in conjunction with its existing methodologies to rate RMBS in China.

    The calibration of MILAN for China was primarily driven by benchmarking the Chinese residential real estate market to other jurisdictions that also use MILAN. Moody's says it has used many .......

    News Round-up 16 August 2016

  • NPL RMBS approach finalised

    Fitch has finalised its approach for rating RMBS backed by non-performing loans, which leverages its US RMBS seasoned and re-performing loan criteria with respect to loan file documentation, due diligence review scope and sample size, and representations and warranties. However, due to the idiosyncratic and adverse-selection risk, the agency applies a rating cap of single-A to NPL RMBS and expects .......

    News Round-up 15 August 2016

  • Residential delinquencies at decade low

    The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased by 11bp to 4.66% in 2Q16, according to the Mortgage Bankers Association's latest survey. The rate is 64bp lower than a year ago and the lowest level in exactly ten years.

    The percentage of loans on which foreclosure actions were started during the second quarter was 0.32%, a decrease .......

    News Round-up 12 August 2016

  • Ocwen upgraded to 'average'

    S&P has raised its overall rankings on Ocwen Loan Servicing from below average to average as a residential mortgage primary, subprime, special and subordinate-lien servicer, in a move many investors had been calling for (SCI 10 August). Management and organisation sub-rankings have also been raised from below average to average, and loan administration sub-rankings have been affirmed at average.

    "The .......

    News Round-up 12 August 2016

  • CRT ratings upgraded

    Moody's has upgraded the ratings of 22 tranches from four credit risk transfer RMBS backed by conforming balance loans issued by Fannie Mae and Freddie Mac. The actions are due to the recent performance of the underlying pools and reflect Moody's updated default projections on the collateral and credit enhancement build-up.

    The affected transactions are Connecticut Avenue Securities (CAS) Series .......

    News Round-up 12 August 2016

  • FNMA markets more NPLs

    Fannie Mae is marketing its latest batch of NPLs, including the fifth community impact pool that the GSE has offered to date. The latter is a small US$20.7m pool of 120 high-occupancy loans, focused in Miami, Florida, while there are four larger pools that comprise approximately 6,900 loans totalling US$1.08bn in unpaid principal balance.

    Wells Fargo and The Williams Capital Group are .......

    News Round-up 11 August 2016

  • 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
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