RMBS

This week, once again, the release of Federal Open Market Committee meeting minutes cast a pall over the mortgage-backed securities market.

Fitch Ratings warned that recent rep and warranty proposals in new U.S. RMBS deals may expose investors to added risks from “weak” underwriting and “defective” mortgages.

Redwood Trust is fully validating expectations that it would keep the private label market of residential mortgage-backed securities (RMBS) alive this year.

Flagstar Bancorp has revised its financial results from a $66.8 million profit in the fourth quarter to a $94.2 million loss due to lawsuits by MBS insurers.

Analysts at Bank of America Merrill Lynch see value in Australian RMBS for global investors, despite the recent downgrades of junior notes by Moody’s Investors Service.

Moody's Investors Service chief executive told investors Friday he is unaware of plans by federal and state officials to sue the company for allegedly misleading investors in the run-up to the housing crisis.

MBS mostly lagged in both rallies and sell-offs in the week ended Feb. 8 amid concerns about increased originator supply and convexity-related selling.

Morgan Stanley announced a reshuffling of roles for managing directors in the banks securitized products group. The changes will help the bank develop its new issue securitization franchise.