RMBS

  • 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

  • Single-family rents rising

    Tenant demand for US single-family properties remains robust, with rent increases in securitised properties approaching 6%. According to Morningstar Credit Ratings' analysis over the last 18 months, rents rose for most properties in 23 single-borrower, single-family rental securitisations.

    While deals backed by single-family rental properties have existed for less than three years, their performance so far has been in line .......

    News Round-up 28 July 2016

  • GSE loan data released

    Fannie Mae has released historical loan performance data in support of its reperforming loan securitisation programme. The data covers approximately 700,000 loans on the GSE's book that were modified due to delinquency.

    This includes loans that are either current, delinquent or liquidated post-modification. "We are pleased to share this data, which will enable investors to better understand the expected performance .......

    News Round-up 28 July 2016

  • Foreign policy

    US agency MBS picking up European, Asian demand

    A surge in foreign interest in US agency MBS over recent months is adding a broader dynamic to the sector. Asian and European accounts are leading the charge in demand, with the latter emerging as a new investor frontier.

    Indications of shifting demand began to surface in May when US Treasury International Capital (TIC) data revealed a spike in net .......

    News Analysis 27 July 2016

  • Mortgage portfolio acquired

    Delta Lloyd Leven has purchased a €500m portfolio of Dutch whole loans from Rabobank. The portfolio consists of individual residential mortgages with an average LTV of 80%.

    The firm says that the transaction fits within its strategic asset allocation, as the portfolio complements its own origination of mortgages. The impact of the transaction on the Delta Lloyd's solvency ratio (SII .......

    News Round-up 27 July 2016

  • Debut sale for structured loans

    Freddie Mac has completed its first-ever structured loan sale following the auction of a US$198.9m pool of 846 seasoned loans. Chimera Investment was the winning bidder for the JPMorgan-serviced loans, marking the beginning of Freddie's expansion of its re-performing loan securitisation and NPL sales programmes.

    The transaction is expected to settle in October, after Freddie began marketing the transaction to potential bidders on .......

    News Round-up 27 July 2016

  • MSR portfolio sold

    First South Bank has purchased a US$84.6m mortgage servicing rights portfolio from Freddie Mac and Fannie Mae. The portfolio comprises 452 high quality loans based in North Carolina. The purchase increases First South Bank's MSR book to approximately US$2.8m and also brings its total balance of mortgage loans serviced for others to approximately US$376.9m.

    .......

    News Round-up 26 July 2016

  • CRT ratings bolstered

    Fitch has taken various positive rating actions on 152 classes from 26 GSE credit risk-sharing (CRT) RMBS issued between 2013 and 2016. The agency reports that the reference mortgage pools of the affected deals have performed well to date, with no pool reporting more than 24bp of serious delinquency, as of the most recent remittance report.

    The transactions under review .......

    News Round-up 26 July 2016

  • Call for claims issued

    The administrator of the Credit Suisse Bulk Settlement Practice (BSP) Fair Fund has called for eligible claimants to submit a proof of claim form by 15 November 2016. Preliminary distribution calculations will then be made for all eligible claimants in each harmed RMBS trust on a pro-rata basis, determined by the claimant's investment in the harmed trust divided by the .......

    Job Swaps 26 July 2016

  • Euro secondary slow

    The summer slowdown is manifesting itself across the bulk of the European securitisation secondary market.

    "It's been very quiet in the past few days with flows down significantly and BWIC volumes subdued," says one trader. "That's all thanks to the lack of volatility and the start of the summer lull."

    However, the trader adds: "We have seen some enquiries in UK .......

    SCIWire 26 July 2016

  • Capital markets pro tapped

    LeaderOne Financial has hired Todd Leddon as svp of capital markets. In the role, he will focus on interest rate risk management, securitisation, loan pricing/best execution, margin management, financial modelling and negotiations.

    Leddon joins the mortgage lender from Skyline Financial, where he was vp in capital markets. He has also held senior roles at CS Financial, Bank of America and Countrywide.

    .......

    Job Swaps 25 July 2016

  • Indian lending risks outlined

    The underwriting practices of lenders will be vital to controlling credit risk in Indian affordable housing loans, reports Moody's. The agency explains that the underprivileged status of many borrowers under the initiative will present unique risks to RMBS.

    The Indian government is seeking to increase home ownership among lower income earners in the country through an affordable housing scheme. These loans are .......

    News Round-up 25 July 2016

  • Placed issuance up

    €74.5bn of securitised product was issued in Europe in 2Q16, according to AFME's latest data snapshot. This represents an increase of 30.9% from 1Q16 (€56.9bn) and an increase of 49.3% from 2Q15 (€49.9bn).

    Of this volume, €29.1bn was publicly placed (representing 39.1%), compared to €14.3bn placed in 1Q16 (representing 25.1% of that quarter's total) and €28.4bn placed in 2Q15 (56.9%). .......

    News Round-up 22 July 2016

  • Negative coupon impact examined

    About 190 rated European RMBS and ABS tranches had coupons at negative levels, as of 1Q16, Moody's reports. Almost half of these tranches are concentrated in Spain, while RMBS accounts for 80% of them.

    Moody's estimates that by year-end, the number of rated RMBS and ABS tranches with negative coupons may increase to about 550 tranches. "The immediate impact has .......

    News Round-up 21 July 2016
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