RMBS

  • 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

  • Goldman settlement gets approval

    A US$272m settlement in one of the last remaining RMBS class action suits to come out of the financial crisis has been approved. Judge Loretta Preska of the US District Court for the Southern District of New York granted the settlement, which resolves a dispute over faulty pre-crisis RMBS pass-through certificates sold by Goldman Sachs.

    The case, NECA-IBEW Health & .......

    News Round-up 4 May 2016

  • Macro issues affecting Brazilian MBS

    Macroeconomic pressures on Brazil will continue to stress CMBS, says Fitch. Credit-linked CMBS will fall faster in 2016 than in 2015 and other CMBS sectors will also suffer, while RMBS deals should remain stable amid the declining residential market as most borrowers have benefitted from a rise in inflation and trusts have significant seasoning.

    Fitch's Brazilian structured finance ratings have seen .......

    News Round-up 4 May 2016

  • Argentina headwinds outlined

    Tighter economic policies implemented by Argentina's newly elected government could prove challenging to securitisations within the country, according to S&P. This adds to the agency's worries that inflation, higher interest rates and stricter underwriting standards could suppress both issuance and borrowing.

    A projected slowdown in GDP growth for Argentina is based on the government's new economic policies, with originators responding by .......

    News Round-up 4 May 2016

  • Belgian resi delinquencies nudge up

    The performance of the Belgian RMBS market remained stable in the six months to February, according to the latest indices published by Moody's. The trend for 90-plus day delinquencies increased slightly from 0.64% to 0.71%.

    Cumulative defaults increased marginally from 0.39% to 0.46% as a percentage of original portfolio balance. Similarly, cumulative losses increased from 0.05% to 0.08% of the .......

    News Round-up 3 May 2016

  • UK mortgage tool launches

    Moody's Analytics has launched UK Mortgage Portfolio Analyser (UK-MPA), a tool to assess and manage credit risk for UK residential mortgages. UK-MPA enables users to project defaults, prepayments and loss severities to help them to determine loan level and portfolio level performance.

    The tool incorporates a number of factors within its model, including loan and borrower characteristics, regional home prices .......

    News Round-up 29 April 2016

  • Irish RMBS delinquencies dropping

    Severe delinquencies among S&P-rated Irish RMBS transactions have declined over the past four years as the Irish economy has recovered. However, they do remain stubbornly high and the rating agency expects it will take some time before housing market conditions and delinquencies normalise.

    Total delinquencies among Irish RMBS rated by the agency were 15.7% as of 4Q15. They peaked at .......

    News Round-up 29 April 2016

  • European placements trending down

    Only €14.3bn of securitised product was placed in Europe in 1Q16, according to AFME's latest data snapshot on the market, as €42.5bn was retained.

    A total of €56.9bn was issued last quarter, a decrease of 20.3% from the €71.4bn issued in 4Q15. However, it was significantly up from the €35.3bn issued the same time last year - a 61.2% increase on 1Q15.

    News Round-up 28 April 2016

  • Towd debuts WAC cap

    Towd Point Mortgage Funding 2016-Granite 1 is the first European securitisation to place a cap on its net weighted average coupon (WAC) (see SCI 5 April). Moody's says that this could lead to less senior interest paid in the revenue waterfall than is suggested by the coupon on the notes.

    "Senior interest payments are exposed to the servicer's ability to reset mortgage .......

    News Round-up 28 April 2016

  • Rate floor ruling assessed

    A recent Madrid court ruling on interest rate floor clauses within retail mortgages should not pose a substantial threat to Spanish RMBS, according to Fitch. The court said that the clauses lacked transparency and were abusive, leaving the possibility that they could become obsolete.

    However, the court did not state that the clauses were illegal, so the implications for affected mortgages may depend .......

    News Round-up 27 April 2016

  • Euro secondary picks up

    The European securitisation secondary market saw an increase in activity yesterday to go with the improving tone of recent sessions.

    "After being quiet for the past few days flows picked up across the board yesterday," says one trader. "Volumes are still not huge, but we're now seeing a lot of enquiries from investors looking for paper."

    Notably, the trader adds: "That .......

    SCIWire 27 April 2016

  • Liquidity tops investor concerns

    While investor fears over China-related uncertainty have subsided, concerns regarding liquidity and central bank policies have grown, according to Morgan Stanley's latest global securitised products investor quarterly survey. Liquidity is the top concern for 21% of respondents.

    Central bank policies cause the most concern for 18% of investors while disappointing US economic growth is now the third greatest concern, at .......

    News 26 April 2016

  • FNMA to issue reperforming deals

    Fannie Mae will later this year begin securitising reperforming loans held on its balance sheet. Reperforming loans are mortgages on which the borrower was previously delinquent but has subsequently become current - either with or without utilising a mortgage modification plan.

    Potential sales of such securities are expected to begin in the second half of the year, but will be .......

    News Round-up 26 April 2016

  • South Korean issuance up again

    South Korean ABS issuance was up by 16.8% in 1Q16 from 1Q15, according to the country's Financial Supervisory Service. Issuance totalled Won13.4trn, which is a Won1.9trn increase from the Won11.5trn issuance figure a year earlier.

    A majority of the growth came from Won8.7trn in MBS issued by the Korea Housing Finance Corporation (KHFC). The increase was mostly because newly-issued MBS backed .......

    News Round-up 26 April 2016

  • Euro secondary steady

    The European securitisation secondary market continues to move steadily ahead.

    Tone continued to be positive across the board at the end of last week and into the start of this. However, lack of supply is still an issue and is causing sessions to be steady rather than spectacular.

    Nevertheless, many of the line items in for the bid are continuing .......

    SCIWire 26 April 2016

  • Record Philippines deal prepped

    8990 Holdings has mandated China Bank Capital to arrange and underwrite a PHP5bn securitisation, which will make it the largest-ever deal from the Philippines. The deal will securitise receivables from 8990's property development subsidiaries.

    The transaction will also be the first purely private sector securitisation in the country. Under the proposal, 8990 will sell up to PHP5bn in contract-to-sell receivables through .......

    News Round-up 25 April 2016

  • RMBS hit by error

    Moody's has downgraded an RMBS Mexican certificate after correcting an error in its cashflow modelling for the transaction. BRHSCCB 05U suffered the downgrade after the agency originally made an incorrect assumption that the deal was still protected through a partial credit guarantee (PCG).

    The PCG covers interest and principal payments, thus increasing the available credit enhancement on the deal. However, .......

    News Round-up 22 April 2016

  • China hurdles laid out

    Moody's says that the Chinese securitisation market could gain valuable traction once a number of hurdles are cleared. Barriers to the market's growth were at the centre of recent discussions between the agency and market players at the China Securitisation Forum in Beijing earlier this month.

    "China's economy is gradually transforming into one that is driven by consumption rather than exports," .......

    News Round-up 22 April 2016

  • FNMA brings fresh CIRT transaction

    Fannie Mae has completed its tenth Credit Insurance Risk Transfer transaction. CIRT 2016-3 shifts a portion of the credit risk on a pool of single-family loans with an unpaid principal balance of approximately US$5.7bn to a single insurer.

    The covered loan pool consists of 30-year fixed rate loans with LTV ratios greater than 60% and less than or equal to .......

    News Round-up 22 April 2016

  • High costs hit non-bank servicers

    Of the three largest US non-bank mortgage servicers - Nationstar, Ocwen and Walter Investment Management - only Nationstar was profitable in 2015, Moody's reports in its latest Servicer Dashboard. With increased regulatory scrutiny set to keep operating costs high, the rating agency believes earnings will improve only marginally this year.

    Nationstar's net income was just US$43m in 2015. Moody's analyst Warren Kornfeld comments: .......

    News Round-up 22 April 2016

  • RMBS research head hired

    Vipul Jain has joined Wells Fargo's research and economics department as md and head of residential mortgage research. Based out of offices in New York and Charlotte, North Carolina, he will lead the bank's RMBS research team in developing strategy, publishing research and generating investment ideas for institutional investors.

    Jain reports to Marielle Jan de Beur, head of structured products .......

    Job Swaps 21 April 2016
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