CMBS

CIT Group has hired a new credit chief along with a new head of administrative affairs, the New York-based middle-market lender announced Tuesday.

European CMBS loans saw a slight decrease in repayments during the month of May, according to figures reported by Fitch Ratings Maturity Repayment Index.

The current crisis has drawn into sharp focus concerns that structural features in some securitization transactions may need to be re-assessed to ensure they are adequate in mitigating the impact arising from possible failures of servicers or other transaction parties. Moody's believes that the performance of a securitization transaction depends not only on the underlying collateral performance but also on the effective performance by such transaction parties of their responsibilities. Our November 2009 publication on this topic, Operational Risks in Securitizations to be Revisited, cites several occurrences where nonperformance of a transaction party may have detrimental effects on a transaction's performance regardless of the underlying pool's performance. We refer to this risk as "operational risk,"

Securitization Focus

ABS players are closely monitoring the Greek government's struggles and assessing how they'll impact European securitizations.

Recently the Securities and Exchange Commission (SEC) granted a temporary exemption from Rule 17g-5(a)(3) for credit ratings provided to most ABS, MBS and other structured finance securities of non-U.S. issuers. This reprieve expires on Dec. 2 and extends from June 2, which is the rule's effective date for domestic firms.

Allonhill hired Fidelity Southern Corp. executive Kathy Ireland as director of securitizations.

The Obama administration continued to push its priorities Thursday on what provisions should be included in the final regulatory reform bill.

The Mortgage Bankers Association (MBA) named Bill Killmer as senior vice president of legislative and political affairs effective July 5.

Commercial real estate (CRE) loan portfolios are turning out to a good investment for buyers attracted to the current appraisals on these assets.