RMBS

  • GSEs offer new mod programme

    Fannie Mae and Freddie Mac will offer principal reduction to certain seriously delinquent, underwater borrowers via its new Principal Reduction Modification programme. This will be a one-time offering for borrowers whose loans are owned or guaranteed by one of the two GSEs and who meet eligibility criteria.

    The modification will be available to owner-occupant borrowers who are 90 days or .......

    News Round-up 15 April 2016

  • RMBS settlement bumped up

    Credit Suisse will pay the NCUA a revised US$50.3m sum for a case settled last month surrounding the bank's role in the sale of faulty pre-crisis RMBS (SCI 29 March). The original agreement had Credit Suisse paying out US$29m, but this has now been increased following prejudgement interest determined by a ruling court in Manhattan.

    The case concerns substantial losses incurred on .......

    Job Swaps 15 April 2016

  • SFR loan extensions expected

    During 2016, the operators for eight single-family rental transactions are likely to exercise their loan term extensions for the first time, says Moody's in its latest ResiLandscape publication. This should not have a material credit impact on the securitisations, however.

    Invitation Homes 2013-SFR1 was the first SFR deal to exercise its one-year optional term extension, which it did last December (SCI 9 .......

    News Round-up 15 April 2016

  • Liquidity tool reaches Europe, APAC

    Interactive Data has launched its liquidity indicators services in Europe and Asia-Pacific, and has also branched out from sovereigns and corporates to include certain TBA-eligible RMBS pass-throughs. The tool is built to help firms assess their portfolios' liquidity profiles under a range of proposed market conditions.

    Indicators include estimates of the projected trade volume capacity of a fixed income security. .......

    News Round-up 15 April 2016

  • Kroll quells TRID fears

    Kroll Bond Rating Agency has published an opinion that tackles some of the key concerns that are surfacing following the TILA-RESPA Integrated Disclosure Rules (TRID) coming into effect late last year. The agency expects the rules to have a limited impact on US RMBS credit enhancement levels.

    In a letter recently penned by the Association of Mortgage Investors, the body stressed that the rules .......

    News Round-up 14 April 2016

  • Further NPLs up for bid

    Fannie Mae has announced its latest sale of non-performing loans, including a third Community Impact Pool. This smaller pool of loans is geographically-focused, high occupancy and is being marketed to encourage participation by smaller investors, non-profit organisations and minority- and women-owned businesses (MWOBs).

    The four larger pools of approximately 8,200 loans totalling US$1.527bn in unpaid principal balance (UPB) and the .......

    News Round-up 13 April 2016

  • Euro secondary selective

    Trading continues to be selective across the European securitisation secondary market.

    "Yesterday we saw some action in prime," says one trader. "On BWIC there was a reasonably large Dutch RMBS list that traded at very tight levels - four-year STORM in the +25 area, for example. At the same time, UK prime saw two-way flows and having been under a .......

    SCIWire 13 April 2016

  • Goldman settles over deceptive practices

    US Attorney General Eric Schneiderman has announced a US$5bn settlement with Goldman Sachs over the bank's deceptive practices leading up to the financial crisis. The settlement was negotiated through the RMBS Working Group.

    The settlement provides for US$670m - comprising US$480m worth of creditable consumer relief and US$190m in cash - to be allocated to New York State. The resolution .......

    Job Swaps 12 April 2016

  • Euro secondary solid

    The European securitisation secondary market remains solid but fairly quiet.

    Tone remains firm across the board though activity is still patchy. An uptick in flows and secondary supply in the middle of last week fizzled out by Friday and yesterday was no different with only very select pockets of activity, which is keeping spreads range-bound.

    Notably, Italian paper did manage .......

    SCIWire 12 April 2016

  • Aussie rent yields at record low

    Rental yields for houses in Sydney and Melbourne have reached record lows, according to Moody's. This has reduced the affordability of servicing investment properties relative to household incomes, increasing the risks for residential property investors and RMBS.

    The drop in rental yields has seen a rise in the level of cashflow losses suffered by residential property investors over the past .......

    News Round-up 11 April 2016

  • Mortgage REITs merge

    Annaly Capital Management is set to acquire Hatteras Financial Corp for a consideration to be paid in cash and shares of Annaly common stock, which values Hatteras at US$15.85 per share of its common stock based upon the closing price of Annaly common stock on 8 April. The value of the consideration represents a premium of approximately 24% to the .......

    Job Swaps 11 April 2016

  • CRT TRID impact gauged

    Credit risk transfer RMBS issued by Fannie Mae and Freddie Mac are likely to incur only small losses related to violations of the Consumer Financial Protection Bureau's TILA-RESPA Integrated Disclosure (TRID) rule, Moody's suggests. At least initially, however, the frequency of violations is expected to be high.

    The FHFA has directed the two GSEs not to conduct routine post-purchase RMBS .......

    News Round-up 11 April 2016

  • Special forces

    ABS dealer tiering emerging via departures, specialisation

    Credit Suisse's recent decision to exit securitised trading in Europe highlights the reshaping of the ABS frontier that is underway across the region. Against the backdrop of regulatory pressures and capital constraints, many dealers are adopting a narrower, more specialised approach.

    In its announcement, Credit Suisse said the reason for ceasing its European ABS trading operations is due to a .......

    News Analysis 8 April 2016

  • Capital markets unit adds DCM director

    Macquarie Capital has appointed Warrick Booth as md in its European debt capital markets team. He will be based in London and report to Sam Newman, head of European DCM, and Stephen Mehos, head of US DCM.

    Booth will lead the syndication of debt and structured equity. He has over two decades of experience in investment banking and has held .......

    Job Swaps 7 April 2016

  • Brexit set to dampen CRE

    The UK's impending referendum on whether to remain in or exit the EU could dampen prospects for the jurisdiction's real estate sector, says S&P. The agency notes that while the long-term impact would depend on how the exit is negotiated, uncertainty could add to capital market volatility and create negative sentiment for real estate investment.

    "Uncertainty leading up to the .......

    News Round-up 7 April 2016

  • Euro secondary patchy

    There is something of a pick-up in the European securitisation secondary market but activity remains patchy.

    "It's getting more active, but we're not yet back to where we were before Easter," says one trader. "Trading is still selective rather than widespread."

    The trader continues: "We've seen a few trades in UK prime, which went wider last week but has come .......

    SCIWire 7 April 2016

  • Euro secondary starts slowly

    The quarter has begun slowly in the European securitisation secondary market.

    "It's been a slow start to the week so far," says one trader. "Tone has remained positive despite the weaker macro backdrop, but clients remain on the sidelines with many still assessing the implications of the Granite Towd deal and the potential lack of future Warwick supply."

    The trader .......

    SCIWire 6 April 2016

  • STS alarm bells ring

    A list of potential pitfalls in the European Commission's STS framework has been published in a letter by 32 signatories, including some of the EU's largest banks. The signatories argue that the STS framework would not, in its current form, provide the solution for the securitisation market that it is intended to.

    The joint-letter seeks to address 10 key points .......

    News 5 April 2016

  • California AG targets RMBS

    The California Attorney General Kamala Harris has filed a lawsuit against Morgan Stanley over RMBS that it allegedly misrepresented when selling to California public pension funds. The complaint  was filed in the San Francisco Superior Court. The funds lost millions of dollars on the RMBS investments.

    "Morgan Stanley's conduct in this case evidenced a culture of greed and deception that helped create a .......

    News Round-up 5 April 2016

  • Granite resurfaces in unique RMBS

    Cerberus European Residential Holdings is bringing to market a deal which is essentially a refinancing of the Granite portfolio it bought late last year (SCI 13 November 2015). Towd Point Mortgage Funding 2016-GR1 is the largest new issue in its sector since before the financial crisis, which is seen as widely positive for UK non-conforming RMBS, particularly so close to the .......

    News 5 April 2016

  • Countrywide initial releases identified

    A severance order and partial final judgment was last week filed in the New York State Supreme Court that would permit allocable shares under the Countrywide RMBS settlement to be distributed to 515 'initial release trusts'. The remaining 15 transactions - 12 CWALT and three CWHL deals - involved in the case continue to be contested.

    The order would release .......

    News Round-up 4 April 2016
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