Finance

Mexico’s Federal District is eyeing early October for a re-opening of a Ps2 billion ($154 million) deal closed June 25, according to a prospectus filed with the Mexican Stock Exchange. The transaction adheres to a formula the originator established with its first issue in December 2003 — the securitization of a loan from the central government, with payments backed by federal participation revenue which the central government doles out to the District. The loan is a necessary step as the District isn’t allowed to take on debt directly. The re-opening is for both a 10 and 10-2 series. The former is a fixed-rate tranche with a 5-year tenor and the latter is a floater with a 10-year tenor. The total volume of the re-opening is capped at Ps3.3 billion, given that total program has a ceiling of Ps5.3 billion. Deutsche Bank is the sole lead.

Fannie Mae 30-year MBS prepaid faster than expected in August. Speeds increased 20% in August from July versus a projection of +14%.

The Basel Committee, representing the Group of Ten nations, sent shivers up the spines of bankers last December when it released its Basel III proposal requiring them to hold significantly more equity to meet higher capital requirements.

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

Fannie Mae wants out of its defaulted residential mortgage holdings as quickly as possible and is warning loan servicers not to stand in its way.

A majority of the largest national banks tightened their underwriting standards on home mortgages during a 12-month period ending March 31, according to a new report released by the Comptroller of the Currency (OCC).

The National Association of Insurance Commissioners (NAIC) has chosen Blackrock Solutions to assist state regulators as they determine risk-based capital (RBC) requirements for the CMBS held by insurers.

The GSE regulator Thursday issued new affordable goals that Fannie Mae and Freddie Mac are expected to meet this calendar year.

Citigroup has arranged a $600 million CLO that will be managed by Guggenheim Investment Management, according to sources.

Mortgage companies added 2,300 full-time employees to their payrolls in July as refinancing applications swelled, compensating for a weak purchase money business.

America First Tax Exempt Investors said Thursday that it has financed approximately $95.8 million through a new long-term secured debt financing facility with Freddie Mac.

The days of bailouts of large financial institutions are officially over, Federal Reserve Board Chairman Ben Bernanke said Thursday.

Volkswagen Leasing has no plans to issue a privately placed auto ABS deal but it is currently marketing the new VCL 12 deal to investors.

Delinquency rates were mixed in the second quarter for commercial/multifamily mortgage investor groups, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report.

Markit plans to launch an MBX agency mortgage bond index on Sept. 12. The new Index offers investors exposure to both interest-only swaps and principle-only cash flows.

The outlook for commercial real estate (CRE) loans backing CMBS continues to improve becuase of increased activity in the CMBS new issue market and strong demand for distressed CRE loans in the secondary market, according to DebtX.

Mortgage servicers completed 120,350 proprietary loan modifications in July and 757,750 for the first seven months of this year, according to new figures released by the HOPE NOW Alliance.

MetLife Bank plans to officially launch its new warehouse lending division in the fourth quarter and is in the process of hiring between four and six additional staffers for the business.

The U.K. Financial Services Authority (FSA) will apply banking book risk weights to securitization trading positions following the position adopted under the capital requirements directive (CRD 3) passed by the European Parliament at the end of July.

Federal Deposit Insurance Corp. (FDIC) Chairman Sheila Bair said Tuesday the agency would soon publish an interim rule on its new resolution authority over systemically important banking companies and certain nonbanks.