Finance

The so-called foreclosure scandal has grabbed headlines over the past month. ASR's November issue looks beyond the mainstream coverage to its effect on bondholders.

The Federal Deposit Insurance Corp. (FDIC) recently finalized its Safe Harbor that protects the assets that are transferred to bank-sponsored securitization vehicles from a financial institution's FDIC receivership.

The recent news coverage has returned many mortgage and MBS-related issues, both real and illusory, to prominence. The initial headlines that stemmed from the announcement of problems with GMAC's foreclosure filings have morphed into questions about the foreclosure process, the extent and potential cost of loan buyouts, and the legal standing of the securitized mortgage market itself. This article addresses some of the issues currently roiling the financial markets.

Capacity constraints at mortgage lenders have dampened the number of refinancings that are able to get through the system. Current origination capacity at these firms can handle a refinancing index at only the 5000 level, Barclays Capital analysts said in a recent report.

The foreclosure crisis has brought the issue of buybacks to the forefront of discussions once again. Jaded investors are looking to get some compensation from the mortgage market fiasco that has seen RMBS delinquency rates soar.

Europe continued to see its primary securitization pipeline move toward recovery with strong issuance dominating the market in October.

With the rising foreclosure numbers being a major issue in the market right now, Paladin Strategic Partners is responding to the problem by providing socially responsible solutions.

Manager Activity: Autos Book Runner Amount (US$ Mil) Rank Mkt.

Moody’s Investors Service has separately placed some servicer ratings of Wells Fargo Bank and IndyMac Mortgage Servicers on review for possible downgrade, citing actions related to foreclosure affidavits.

While loan servicers get much of the blame for improperly following foreclosure procedures, some others are pointing to another culprit: the patchwork of state standards.

Amherst Holdings is planning a new distressed mortgage asset management group, according to a Reuters report.

There are three regulations that are causing a hullabaloo among CLO market participants.

With more borrowers filing legal challenges to foreclosure, many mortgage lenders have turned their back on using Merscorp, which operates an electronic loan registry, to bring foreclosure actions.

CarMax has a new $650 million auto loan securitization marketing that will offer investors three triple-A rated tranches as part of it capital structure.

Profiting from a relationship with behemoth Petroleos de Brasil, Brazil’s Odebrecht Oleo e Gas is tapping the structured finance for a whopping $1.5 billion. Santander and HSBC are reportedly arranging the deal. Neither bank returned requests for comment.

Consumers have stopped using their homes as personal piggy banks with cash-out refinancings falling to their lowest level ever in the third quarter, according to figures compiled by Freddie Mac.

Fixed mortgages inched higher in the week ending Oct. 28, according to Freddie Mac's weekly survey.

Cole Real Estate Investments hired David Collins as vice president in the asset management group. Marc Nemer, Cole president. announced the hiring.

The current — and somewhat robust — refinancing boom has to end sometime, and already mortgage bankers are asking the obvious: If home purchases don’t pick up, then what?

Home Affordable Modification Program (HAMP) compliance agents are targeting the 10 largest servicers to see if they exhausted all loss mitigation options before proceeding with foreclosure sales, according to a Treasury Department official.