RMBS

  • Canadian RMBS transferred

    Equitable Bank has entered into an agreement with Canada Mortgage and Housing Corporation (CMHC) to become the successor issuer on C$3.1bn of outstanding National Housing Act (NHA) MBS pools originally issued by Maple Bank's Toronto branch and bought by third-party investors. The move follows Maple's Chapter 15 bankruptcy filing in February after Germany's BaFin initiated a tax probe into the .......

    News Round-up 13 September 2016

  • Chinese issuance gains momentum

    China's structured finance market will continue expanding in both scope and scale, with increased asset class diversification, says Fitch. A total of CNY193.4bn of Chinese structured finance transactions were issued in 2Q16, representing a 96% year-over-year increase.

    In its latest quarterly publication on Chinese structured finance, the rating agency says the increase in issuance was principally driven by 242% growth .......

    News Round-up 13 September 2016

  • Euro secondary unmoved

    The European securitisation secondary markets have been unmoved by recent broader market volatility.

    Tone continues to be positive across the board and secondary spreads were generally insulated from last week's wider market sell-off. Whereas, boosted by the stronger macro sentiment seen yesterday afternoon widespread tightening looked set to resume at this morning's open.

    Shortage of primary supply continues to be the .......

    SCIWire 13 September 2016

  • Housing boost for Spain

    The bottoming-out of house prices in Spain will reduce the expected severity of mortgage defaults, resulting in the improvement of the performance of Spanish RMBS, SME ABS and covered bonds, according to Scope Ratings.

    Analysts at the agency suggest that concerns about the near-term volatility of expected recovery rates on defaulted mortgage loans backed by residential properties in Spanish deals .......

    News 13 September 2016

  • Ocwen fails two tests

    Ocwen failed two compliance tests in 4Q15 due to force-placed insurance, according to the latest US National Mortgage Settlement monitor review by Joseph Smith. The failures came after the servicer had passed all tests in the previous quarter.

    Smith says that Ocwen failed metrics 28 and 29, the former of which tests the timeliness of communications regarding a lapse in .......

    News Round-up 12 September 2016

  • NPL portfolio on the block

    Freddie Mac is auctioning off a US$1.1bn portfolio of seasoned non-performing residential whole loans held in its mortgage investment portfolio. The NPLs are currently serviced by Wells Fargo or Ditech Financial.

    The NPLs are being marketed via five pools: four standard pool offerings (SPO) and one extended timeline pool offering (EXPO). Bids are due from qualified bidders on 29 September .......

    News Round-up 12 September 2016

  • Cannibal territory?

    Covered bond growth poses threat to RMBS

    The pace of the ECB's investment in the ABSPP and CBPP3 appears to be slowing, yet the impact the programmes have had on the market is undeniable, with covered bond volumes now threatening to eclipse RMBS. The comparative simplicity of covered bonds and their resulting favour with the ECB appears to have directly fed the cycle whereby covered bond issuance .......

    News Analysis 12 September 2016

  • Prepayment spikes

    Shift in focus for agency CRT investors?

    Investors in US agency credit risk transfer (CRT) RMBS are taking note of recent STACR prepayment spikes. Robust performance and the re-emergence of a structural nuance have spurred a shift in focus for a sector historically focused on credit risk.

    Freddie Mac STACR prepayment speeds for July continued their recent trend of increasing, with most deals surpassing their highs from .......

    News Analysis 9 September 2016

  • MBS salesman suspended

    Kevin Blaney has agreed to pay a US$30,000 fine and serve a three-month suspension from association with any FINRA members over alleged misleading of customers. The suspension leaves the former Jefferies md and MBS salesman unable to make any contact in the industry until after 5 December.

    FINRA's investigations found that Blaney was tied to six transactions at Jefferies, where .......

    Job Swaps 9 September 2016

  • Credit unions express CSP concerns

    The FHFA's planned Common Securitisation Platform (CSP) might have a negative impact on credit unions, according to The National Association of Federal Credit Unions (NAFCU). In a recent letter to the FHFA, NAFCU counsel Ann Kossachev expresses several concerns about the potential pitfalls of the CSP.

    Kossachev comments: "Although FHFA's efforts to create a more efficient platform with an 'open .......

    News Round-up 9 September 2016

  • 'Less risk' in marketplace RMBS

    Additional risks posed to RMBS issued by marketplace lenders (MPLs) will be mitigated by existing regulatory and securitisation frameworks, Moody's says. In a recent comment, the rating agency says it expects future issuance of RMBS from MPLs, but suggests that it will pose less risk than unsecured consumer loan ABS issued by MPLs.

    The agency has repeatedly stressed the lack .......

    News Round-up 8 September 2016

  • Borrower profile lifted

    Caliber Home Loans is in the market with its latest non-prime RMBS - the US$216.97m COLT 2016-2. Sterling Bank and Trust originated 15.3% of the pool, improving the borrower credit profile compared to the preceding transaction.

    Fitch notes that while the credit quality of the remainder of the pool originated by Caliber in 2016-2 is consistent with the credit quality .......

    News Round-up 7 September 2016

  • Mortgage originations spike

    US mortgage origination figures hit a three-year high in Q2, with REO and short sales making up 7% of all residential transactions, according to Black Knight. While this is the lowest such share for nine years, it is still twice the normal market level of just over 3%.

    The data firm points out that two-thirds of distressed sales in residential .......

    News Round-up 7 September 2016

  • Four more NPL pools sold

    Fannie Mae has successfully offloaded another set of non-performing loans, it's seventh sale to date. There were four separate winners for the equivalent number of pools on offer, which accumulated to the total sale of approximately 6,800 loans at US$1.06bn.

    Goldman Sachs subsidiary, MTGLQ Investors, was the winning bidder of the first and largest pool, coming to over US$468,000 worth in .......

    News Round-up 7 September 2016

  • Euro secondary stays positive

    The positive tone continues across the European securitisation secondary market.

    Although the US public holiday has hampered activity so far this month, secondary spreads across European ABS/MBS and CLOs have continued to edge in since 1 September. UK non-conforming paper continues to lead the way boosted by the dearth of primary supply and the upcoming Aire Valley refinancing, combined with the .......

    SCIWire 6 September 2016

  • Residential NPL sale announced

    The US Department of Housing and Urban Development (HUD) has announced another sale of non-performing residential loans as part of its Distressed Asset Stabilisation Program (DASP). On 14 September HUD will offer 20 non-performing residential mortgage pools made up of 10,500 notes with an unpaid principal balance (UPB) of approximately US$1.7bn.

    The sale will also consist of 12 Neighbourhood Stabilisation Outcome .......

    News Round-up 5 September 2016

  • RMBS hit by servicing transfer

    Moody's has placed the ratings of six certificates from five Mexican RMBS sponsored by Hipotecaria Su Casita on review for downgrade. The move reflects the agency's concerns about the future performance of the transactions, following the servicing transfer from Santander Vivienda to Pendulum.

    The transfer caused a considerable decline in collections for all Su Casita's deals in the month following .......

    News Round-up 2 September 2016

  • Refi programmes 'credit positive'

    Fannie Mae and Freddie Mac's new refinancing option for borrowers with high LTV ratios is credit positive for their credit risk-transfer transactions, says Moody's in its latest Credit Outlook. The announcement of the plans last week by the FHFA (SCI 26 August) will allow underwater homeowners with GSE mortgages to retire and replace those loans.

    Moody's explains that if affected mortgages .......

    News Round-up 1 September 2016

  • Euro secondary stable

    The European securitisation secondary market remained stable throughout August and that looks unlikely to change in the run up to the US holiday on Monday.

    For the most part 2016 followed a traditional pattern in August across ABS/MBS - liquidity was thin and activity was patchy, with BWICs few and far between. UK non-conforming/buy-to-let paper saw the most demand, which .......

    SCIWire 1 September 2016

  • Second-loss CAS bonds rated

    Marking a first for the market, Fitch has assigned ratings to eight previously unrated M2 bonds from five Fannie Mae credit risk-transfer RMBS issued between 2013 and 2015. The agency had originally only rated the M1 classes in the five transactions, all which have either paid in full or been upgraded (SCI 26 July), reflecting strong performance to date.

    The .......

    News 31 August 2016

  • Colony offloads NPLs

    Colony Starwood Homes has sold a US$266m portfolio of 1,675 NPLs to an affiliate of Starwood Capital Group. The completion of the sale is a major step towards the REIT's exit from the NPL business.

    The portfolio was auctioned with the assistance of Credit Suisse, following the recent joint venture between Colony and Prime Asset Fund VI, in which Colony has been using Prime to conduct .......

    News Round-up 31 August 2016
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