RMBS

  • 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

  • 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
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