RMBS

  • Freddie debuts latest risk transfer offering

    Freddie Mac has a new way to transfer multifamily mortgage credit risk. It has now settled its first offering of Freddie Mac Multifamily Structured Credit Risk (SCR) Notes.

    The US$52m SCR Notes Series 2016-MDN1 deal transfers a portion of the credit risk on certain multifamily mortgage loans backing targeted affordable rental housing tax-exempt bonds guaranteed by the GSE. While the .......

    News Round-up 17 May 2016

  • Euro secondary slumbers again

    Yesterday saw another sleepy start to the week for the European securitisation secondary market.

    After a flurry of activity on Friday, the public holiday in Europe yesterday saw the whole market revert to the quieter pattern seen at the start of last week. Indeed, with many investors absent a CLO equity BWIC was postponed until Wednesday and flows across the .......

    SCIWire 17 May 2016

  • FNMA NPLs scooped up

    Goldman Sachs is the latest winning bidder in Fannie Mae's ongoing process of selling off NPLs. The latest auction, the fifth to be held by the GSE, will see 7,900 loans worth US$1.48bn sold to the bank across four pools.

    The loans were marketed from 12 April, with Fannie Mae assisted by Bank of America Merrill Lynch, First Financial Network and CastleOak Securities. .......

    News Round-up 16 May 2016

  • Countrywide partial judgement approved

    The severance order and partial final judgement for 512 of the 530 trusts subject to the US$8.5bn Countrywide RMBS settlement has been approved (SCI 12 May). The severance order provides for the pay-out for the 512 initial release trusts to be resolved, while proceedings on the 18 remaining trusts continue, according to Wells Fargo RMBS analysts. The partial final judgement .......

    Job Swaps 16 May 2016

  • Loss criteria updated

    Fitch has updated its criteria for estimating losses on US RMBS mortgage pools, following the release of an exposure draft in February (SCI 9 February). The update reflects the changes proposed in the exposure draft, as well as additional changes resulting from market feedback and additional research by the agency.

    The core principle of the framework remains the interaction between .......

    News Round-up 13 May 2016

  • Excess rent impact analysed

    Single-family rental (SFR) investor loans where the property income exceeds 1.2 times the debt service have generally experienced a better-than-average default rate, according to a new Morningstar Credit Ratings study. The agency expects these loans to be a driver of SFR market growth.

    A new type of investor property loan has emerged from SFR originators - such as B2R Finance, .......

    News Round-up 12 May 2016

  • Countrywide pay-out nears

    The New York Supreme Court last week received a proposed severance order and partial final judgement from BNY Mellon as trustee for 512 of the 530 RMBS trusts subject to the US$8.5bn Countrywide Settlement. A group of investors, who have been actively involved in the determination of the proper procedures for handling the payout, have filed a motion consenting to .......

    Job Swaps 12 May 2016

  • Euro secondary still sluggish

    Activity continues to be sluggish in the European securitisation secondary market despite the tone remaining firm across the board.

    In ABS/MBS, Tuesday saw a flurry of BWICs that traded well, but yesterday auction activity slowed once more. Flows continue to be generally light even though sentiment is positive with prime RMBS and autos, along with select peripheral names attracting the .......

    SCIWire 12 May 2016

  • SFIG TRID framework 'adequate'

    SFIG's draft proposal to standardise the framework for reviewing and grading loans for TILA-RESPA Integrated Disclosure (TRID) rule compliance is generally adequate to identify compliance risks that are likely to cause RMBS losses, says Moody's. However, the rating agency does disagree with one grading provision.

    The framework has a grading scale designed to distinguish material TRID violations from immaterial ones. .......

    News 11 May 2016

  • Deal agent rankings assigned

    Morningstar Credit Ratings has assigned two new vendor rankings for the recently created roles of RMBS deal agent and representation and warranty reviewer, becoming the first in the industry to do so. The agency assigned its MOR RV2 residential vendor rankings to Clayton Holdings, a wholly owned subsidiary of Radian Group.

    Morningstar says it is the only rating agency offering .......

    News Round-up 11 May 2016

  • Insurers' structured holdings slip

    Life insurers held more than US$380bn of structured products securities at the end of 2015, which Wells Fargo analysts note represents a decline of approximately US$20bn from year-end 2014. Insurers' balance sheets actually increased 2%, so the decreased allocation to structured products is even greater on a relative basis.

    As a percentage of total cash and fixed income, structured products' .......

    News 10 May 2016

  • UKAR transfer finalised

    Computershare has been appointed to undertake mortgage servicing for UK Asset Resolution, following a competitive tender (SCI 2 February). Around 1700 UKAR staff based in Crossflatts and Doxford in the north of England will transfer to Computershare under the contract, which is expected to commence in mid-2016.

    Following the transfer, Computershare will become the largest third-party mortgage servicer in the .......

    Job Swaps 10 May 2016

  • Euro ABS/MBS starts slow

    It was another slow start to the week for the European ABS/MBS secondary market.

    Yesterday's session followed on from those of the previous week with another day of very light flows. Lack of significant primary activity continues to hold back any potential for secondary momentum, though spreads continue to be stable.

    In the absence of any stronger focus Brexit continues .......

    SCIWire 10 May 2016

  • Firm foundations

    RMBS breaks records, prepares for post-referendum issuance

    The £6.2bn Towd Point Mortgage Funding 2016-Granite1 RMBS that priced last month is the largest new issue in its sector since before the financial crisis. However, its effect on the market could be revolutionary for a different reason - the introduction in Europe of a weighted average coupon (WAC) cap (SCI 28 April).

    The Towd Point RMBS - arranged by .......

    News Analysis 10 May 2016

  • Mixed energy effects for Euro RMBS

    While both Aberdeen and Groningen are affected by stress from the energy sector, mortgage arrears have surged in the former but stayed stable in the latter, notes Moody's. Aberdeen is affected by contagion from rising unemployment as oil prices plummet, while Groningen is affected by the prospect of earthquakes due to gas field operations.

    Aberdeen is the city in the UK most .......

    News Round-up 9 May 2016

  • UK prime RMBS 'stable'

    UK prime RMBS continues to perform in a stable fashion, according to Moody's latest index results on the sector. Between November and February, 90-plus day delinquencies increased slightly to 0.73% from 0.69%.

    Meanwhile, outstanding repossessions remained at 0.02%. In the same period, cumulative losses decreased to 0.07%, which was mainly due to the termination of Granite Master Trust from the Moody's .......

    News Round-up 6 May 2016

  • Aussie housing turns corner

    Australian housing affordability deteriorated over the 12 months to the end of March, requiring homeowners to spend a larger proportion of their income on monthly mortgage repayments, reports Moody's. However, the positive news for RMBS is that rating agency believes the worst may be over.

    Nationally, Australian households spent 27.6% of their monthly income to meet monthly mortgage repayments, up .......

    News Round-up 6 May 2016

  • Argentina RMBS set to emerge

    Argentinean RMBS prospects could be boosted by the creation of a new inflation-adjusted accounting unit, says Moody's. The agency believes that the unit will help increase mortgage origination, but says the RMBS market will not reach its full potential until the national government can rein in inflation.

    The Central Bank of Argentina recently announced the creation of the inflation adjustment unit, which will act as a .......

    News Round-up 5 May 2016

  • RPL RMBS hitting expectations

    The early performance signals from US reperforming loan RMBS deals reveal that they have matched expectations, according to Fitch. Deals rated by the agency have in fact slightly exceeded performance in comparison to their non-rated counterparts, which has stemmed largely from the different underlying collateral risk attributes.

    The rated RPL market has grown with more new issuers participating since the end of 2014. Fitch has .......

    News Round-up 5 May 2016

  • FNMA enhances CAS disclosures

    Fannie Mae has made further enhancements to its loan level disclosure data for its Connecticut Avenue Securities (CAS) programme. From this month, Fannie Mae has expanded its relationship with Equifax to provide investors with monthly updated, anonymous, loan-level credit scores on all CAS deals since the programme's inception in 2013.

    The information being made available was previously only available for .......

    News Round-up 5 May 2016

  • Seattle MBS settlement agreed

    Bank of America has agreed to pay a US$190m settlement to the Federal Home Loan Bank of Seattle regarding pre-crisis RMBS that it sold, according to its quarterly SEC 10-Q filing. The agreement resolves a six-year litigation battle between the two banks after it was finalised on 25 April.

    The government-sponsored Seattle bank had argued in the case that Bank of .......

    News Round-up 4 May 2016
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