Finance

A recent story on Bloomberg reported that Treasury officials are leaning toward a specific option outlined in 2011's white paper on the future of the GSEs. While their preferred option is impractical and unworkable, I believe that Fannie and Freddie can be restructured to serve as the foundation for a new mortgage system backed by private capital.

Fitch Ratings caused a stir last month when Credit Suisse dropped the firm's rating of an RMBS because it took a more critical view of the deal than two of its rivals.

Two and a half years ago, regulators opened the door for rating agencies to offer ratings or commentary on credits even when they haven't been hired to do so. Since then, all NRSROs can access detailed transaction data that issuers are required to post on designated issuer Web sites. The intended effect: a side market in unsolicited ratings and commentary. The actual effect: not a single unsolicited rating and roughly 15 commentaries.

It has been more than nine months since Sekerbank introduced Turkey to covered bonds, and no one else has followed suit.

Regulations are making trade finance CDOs more attractive, but recent press buzz surrounding the market's potential appears to be overhyped and maybe a little amnesic.

The April 26 sale of Maiden Lane III (ML III) assets caused some disruption in CMBS spreads.

As issuance of CMBS ramps up again, so do concerns about the deterioration in the quality of loans used as collateral.

The expected increase in mortgage prepayments following changes to the Home Affordable Refinance Program, or HARP 2.0, has so far not reached the levels expected.

Changes made late last year to the Obama administration's flagship mortgage refinance program, Home Affordable Refinance Program (HARP), have boosted profits at the nation's largest banks at the expense of homeowners and U.S. taxpayers, according to mortgage experts testifying at a Senate hearing the week of April 23.

The increasing vehicle sales and used car prices as well as the tight spreads are aiding the growth in subprime auto ABS, according to Standard & Poor's analysts in a e-mailed note released this morning.

Lenders are no more willing now to make a home loan backed by Fannie Mae or Freddie Mac than they were six years ago, according to a Federal Reserve Board survey released Monday.

In the last four weeks, subprime auto and FFELP SLABS have tightened five basis points to 10 basis points, which is the most of any asset class in that period, Wells Fargo analysts said in a report released this afternoon.

Industry efforts to pass legislation that would exclude originator compensation from the statutory points and fees test in the qualified mortgage rule are off to a slow start on Capitol Hill.

Ally Financial, in a new public filing, finally admitted that it is weighing bankruptcy protection for its struggling residential mortgage division, which is facing potential additional losses of up to $4 billion.

Recently National Australia Bank (NAB) had priced a $1 billion RMBS for Member Equity Bank that was sold to global investors, which include money market investors, and domestic buysiders.

Freddie Mac has a new offering of structured passthrough certificates or K certificates. The deal comprises roughly $1 billion in multifamily MBS, which are set to price this week.

Western Asset Mortgage Capital Corp. today announced its plans for an IPO of 8,000,000 shares of its common stock.

The House approved a student loan bill Friday on a partisan basis that immediately invoked a veto threat by the White House.

National Credit Union Administration (NCUA)is preparing to ease the reins on the use of financial derivatives and allow more credit unions to deal in a variety of instruments that would help them hedge interest rate risk, including interest rate swaps, caps, floors, options and collars.

Housing industry groups are pressing the Consumer Financial Protection Bureau (CFPB) to craft a qualified mortgage rule that shields lenders from meritless litigation and ensures access to affordable and sustainable mortgages.