Finance

The decision to delay the implementation date on Basel III capital rules could be a game changer for the residential mortgage servicing business–or maybe not.

The decision means that the company must now prepare to go to trial to defend itself against allegations by the Federal Housing Finance Agency of wrongdoing in its sale of RMBS.

This week came alive on Wednesday as investors responded to the re-election of President Barrack Obama and the October prepayment reports released late afternoon on Tuesday.

Fannie Mae – which has recovered billions of dollars in damages from mortgage bankers on buyback requests – is cutting down on due diligence reviews.

CNH Capital America will issue under its CNH Equipment Trust 2012-D.

Lease transactions are increasingly making up a larger portion of auto ABS issuance and offer investors a good alternative to auto loan ABS, Credit Suisse analysts said.

New Penn Financial this week unveiled a new Jumbo loan that will likely wind up in MBS issued by its affiliate Shellpoint Partners.

U.S. financial institutions will not be required to start complying with Basel III capital and liquidity requirements by Jan. 1, according to a joint statement issued by regulators on Friday.

Santander Consumer Bank AS is marketing a $809 million securitization of Norwegian auto loans called Bilkreditt 3 Limited that will offer investor notes denominated both in euros and Norwegian kroners.

California Republic Bancorp has completed a securitization of nearly $183 million of prime indirect automobile loans.

PHH Corp. posted a $42 million loss in the third quarter after marking down the value of its servicing portfolio by $217 million.

Mezzanine-level subprime bonds securitized by Texas loans are likely to have higher valuations than mezzanine subprime bonds without Texas exposure.

BofA Merrill analysts expect the national S&P Case Shiller index to increase 5% this year, up from an initial forecast of a 2% gain the bank called in August.

Interest shortfalls in European CMBS loans continue to push note-level defaults. In September, the number of defaults pushed the 2012 total to 21, which is more than half of the 37 defaults seen in 2011, according to a Standard & Poor’s report.

The percentage of loans paying off on their balloon date remained elevated in October, according to the Trepp Oct. 2012 payoff report.

In its weekly report, Freddie Mac reported 30-year fixed mortgage rates averaged 3.40% from 3.39% last week. Since the end of September, rates have held to a narrow range of 3.36% to 3.41%.

Moody's Investors Service has assigned a ‘Aaa’ rating to both the floating and fixed rate tranches of Barclays’ Capital first SEC registered, reg AB compliant, U.S. credit card receivable platform called Dryrock Issuance Trust.

Fitch Ratings said in a report today that Korea's proposed covered bonds act should boost issuance.

Fannie Mae reported weaker earnings in the third quarter – including a loss on its single-family business – but also announced that its MBS market share set a new all time record: 52%.

As expected, superstorm Sandy in the northeast contributed to a 5% decline in mortgage application activity in the week ending Nov. 2. The Refi Index fell 5% to 4244.3, while the Purchase Index was down 4.8% to 176.4.