RMBS

  • Low interest rates boost UK NC RMBS

    The low interest rate environment and its impact on borrower affordability have contributed significantly to the positive rating actions on UK non-conforming RMBS, according to Fitch.

    Fitch's ratings index for loans in arrears - for three months or over - showed a 5.3% decline to 17.7% in 3Q10, from 18.7% in 2Q10. The index for current outstanding repossessions has also .......

    News Round-up 18 November 2010

  • Vendors link in transparency drive

    Equifax has linked its ABS Credit Risk Insight Direct tool to Lewtan's ABSNet Loan database of residential deal and mortgage performance data. The collaboration aims to bring further transparency to the analysis of MBS, while providing indicators of loan performance, such as updated credit scores, detail on all mortgage and home equity payments and owner-occupancy and performance on past mortgages.

    .......

    News Round-up 18 November 2010

  • Bank names MBS trading head

    BNP Paribas has appointed Bogac Ozdemir as head of US long-term interest rate swap and agency MBS flow trading. Based in New York, he will report to the firm's head of US dollar rate trading, Laurent Dulout.

    Before joining BNPP, Ozdemir was head of US dollar rates at Credit Agricole. Prior to this, he was at Citibank for 11 years, .......

    Job Swaps 17 November 2010

  • Mortgage warehouse established

    Annaly Capital Management has established Shannon Funding to provide warehouse financing to residential mortgage originators in the US. Shannon, which will operate out of offices in Bellevue, Washington, plans to begin operations in the first quarter of 2011.

    Shannon will be led by Bruce Watterson, who has over 25 years of industry experience. He was the founder of Watterson-Prime, which .......

    News Round-up 17 November 2010

  • ASF underlines legality of mortgage transfers

    The American Securitization Forum (ASF) has issued a White Paper to clarify the legal principles and processes underpinning the assignment and transfer of home mortgages and the creation of MBS.

    "As our study highlights, the principles and processes involved in securitisation result in valid and enforceable transfer of ownership of mortgage notes and underlying mortgages," says Tom Deutsch, ASF executive .......

    News Round-up 17 November 2010

  • US RMBS reviewed on tail risk

    Fitch has placed 1,810 tranches of US RMBS on rating watch negative in response to concerns that small pools in the sector are becoming an increased risk.

    "Most existing RMBS transactions are not structured to protect against the potential for increased performance volatility as the pool size declines," says Fitch md Grant Bailey.

    Fitch says it will raise credit enhancement .......

    News Round-up 17 November 2010

  • Cooperation on MBS data service

    Equifax and BlackBox Logic are to merge their MBS data solutions to offer greater investor transparency. Equifax's data solution, ABS Credit Risk Insight Direct, will statistically match up-to-date borrower credit information to BlackBox Logic's database of MBS performance data. The collaboration is intended to help investors improve model accuracy, better predict loan default and prepayment, and enhance deal surveillance, the .......

    Job Swaps 17 November 2010

  • US RMBS foreclosure risks examined

    Moody's has released a report that examines four foreclosure-related risks that currently pose a threat to US RMBS.

    First is the issue of missing and defective documents in foreclosures, which presents the most serious risk to RMBS, according to the agency. "We expect the issue of missing and defective documents to arise frequently in foreclosures," says Yehudah Forster, Moody's vp .......

    News Round-up 16 November 2010

  • REIT closes private RMBS

    Walter Investment Management has privately placed US$135m RMBS notes issued by Mid-State Capital Trust 2010-1. The deal is backed by US residential mortgage loans, building and instalment sale contracts, promissory notes, related mortgages and other security agreements.

    The US$56m class A notes priced at 350bp over Libor, while the US$78m class M notes came at 525bp over. Both notes are .......

    News Round-up 16 November 2010

  • Portuguese downgrades raise counterparty flag

    Fitch says that the recent downgrades of several Portuguese banks will have an impact on two Portuguese RMBS, but is unlikely to affect 12 other RMBS and three Fitch-rated Portuguese SME CLOs. The affected banks are Banco BPI, Banco Espirito Santo, Millenium BCP and Banif.

    At present, Banco BPI and Banco Espirito Santo perform several counterparty roles, including hedging counterparties, .......

    News Round-up 12 November 2010

  • Ambac regulator's actions challenged

    The RMBS Policyholders Group has issued a statement saying that the bankruptcy filings of Ambac Financial Group (AFG) demonstrate clearly that the Wisconsin Office of the Commissioner of Insurance (OCI) failed in its statutory duty to protect policyholders of Ambac Assurance Corporation and "actively participated in an arrangement that will divert billions of dollars of tax attributes from the insurance .......

    News Round-up 12 November 2010

  • US subprime prices hold steady

    Fitch reports that US subprime prices held steady for the fourth month in a row, with two underperforming vintages showing signs of a rebound. While the agency's US Subprime RMBS Total Market Price Index stood at 9.82 at the end of October, a closer look reveals that the recent 2006 and 2007 vintages have evened out, following significant price declines .......

    News Round-up 11 November 2010

  • Bank adds trading heads

    BB&T Capital Markets has appointed Peter Faherty and Jim Maughan to its fixed income trading operation. With nearly 20 years of mortgage securities experience, Faherty joins the firm's New York office as head of mortgage securities trading. Maughan joins BB&T's Boca Raton's office as head of agency trading, bringing more than 20 years of experience to the firm's agency operations.

    .......

    Job Swaps 10 November 2010

  • GSE recapitalisation costs estimated

    The ultimate taxpayer cost to resolve Fannie Mae and Freddie Mac could reach US$280bn, including the US$148bn already invested, according to S&P. However, the agency estimates that this figure could swell to US$685bn with the establishment of a new entity to replace the two GSEs, which the government would initially capitalise.

    "It appears unlikely in our view that housing and .......

    News Round-up 9 November 2010

  • US mortgage default rates improving

    S&P reports that default rates among US residential mortgage loans continued to improve through 3Q10. However, the uncertain climate in the housing market highlights the possibility that conditions could deteriorate further, the agency says.

    "Monthly default rates improved the most among subprime and Alt-A loans, while prime default rates remained largely unchanged," says Diane Westerback, S&P's head of global surveillance .......

    News Round-up 8 November 2010

  • Loss assumptions updated on 14 UK RMBS

    Moody's has updated its loss assumptions for 14 UK non-conforming RMBS, but has taken no rating action in consideration of the sufficient levels of credit enhancement. The affected transactions are: Eurohome UK Mortgages 2007-2; Great Hall Mortgages No 1 Series 2006-01; Leek Finance 17, 18, 20 and 21; Mortgages No 7; RMAC 2005-NS1, 2005-NSP2, 2005-NS3 and 2005-NS4; ResLoC UK 2007-1; .......

    News Round-up 5 November 2010

  • US subprime servicer advances declining

    Further evidence of US mortgage servicers' more pessimistic view of recovery prospects is in the steadily declining rate of servicer advances on delinquent mortgage loans, according to Fitch's latest Performance Metrics results for the sector.

    Where mortgage servicers were advancing payments on over 90% of delinquent loans across all asset types during the market peak of 2006, the number has .......

    News Round-up 5 November 2010

  • Servicer ratings sector on negative outlook

    Fitch has assigned a negative outlook for the entire US residential mortgage servicer ratings sector on increased concerns surrounding alleged procedural defects in the judicial foreclosure process. This industry-wide issue will cause all servicers to be under increased scrutiny from a wide range of state and federal regulators, attorneys and GSEs, the agency says.

    Fitch's survey showed that approximately one-third .......

    News Round-up 4 November 2010

  • UK mortgage arrears hits North harder

    S&P's study of regional differences in UK mortgage arrears and borrowers' equity positions indicates that the recent recession hit borrowers in the North of the country harder than those in the South. Using data from approximately 1.5m loans backing UK prime RMBS, the agency found that the level of arrears among mortgage borrowers in the North was almost 25% higher .......

    News Round-up 4 November 2010

  • Irish RMBS restructurings affirmed

    Bank of Ireland has restructured its Colston 2-4 RMBS deals, originated under the Bristol & West and Bank of Ireland Home Mortgages brands, following its formation of a new UK bank - Bank of Ireland UK (BoIUK). Under the restructuring, certain assets were repurchased from all three transactions' pools and transferred to BoIUK.

    To reduce the size of the asset .......

    News Round-up 2 November 2010

  • Gracechurch master trust restructured

    Barclays Bank has restructured its RMBS master trust, Gracechurch Mortgage Financing. Moody's believes that the restructuring will not impact the current ratings assigned to any of the notes and that it is ratings positive.

    Under the restructuring, Barclays has made a refinancing contribution to repay all amounts currently outstanding on the Gracechurch Mortgage Financing Series 2009-1 notes, which it had .......

    News Round-up 2 November 2010
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