RMBS

DBRS said in a report today that it declined to rate two RMBS transactions this year because of weaker representations and warranties (R&W) framework proposals in these recent securitizations.

Blame it on the weaker reps & warranties in the $616 million transaction.

U.K. prime RMBS investors may see loss severities decrease in U.K. RMBS deals as house prices stabilize on the back of a new housing initiative announced yesterday, according to a Barclays report.

EverBank’s planned $308 million residential mortgage-backed securitization may offer investors access to a new issuer name; but the structuring stays in line with safe, prime quality deals that have dominates post financial-crisis market issuance.

JP Morgan is planning to issue a $616 million private label residential mortgage securitization, according to a presale report from Fitch Ratings.

Greater use of credit bureaus by Russian originators is a credit positive for securitizations in that country.

The catalysts were changes in the models used by Fitch, adverse selection in older mortgage pools, and the sovereign crisis in Europe.

Standard & Poor’s lowered ratings on 145 classes from 72 U.S. RMBS transactions that are insured by MBIA Insurance Corp. following the bond insurer’s Feb. 28, downgrade.