RMBS

In the wake of Hurricane Sandy, delinquency rates are expected to rise in RMBS deals.

Volume in MBS trading was at less than two-thirds of normal as a result of thinly staffed trading desks and the market shutdown.

Citgroup Global Markets said that the number of RMBS delinquencies that eventually default resulting from Hurricane Sandy will mostly depend on how much damage will be covered by insurance.

Ally Bank is vowing to carry on in the residential finance sector, albeit in a reduced role.

Redwood Trust, the most active securitizer of Jumbo loans in the nation, earned $40 million in the third quarter – double of what it took in 2Q12 – and unveiled plans to ramp up non-agency loan production over the next 12 months and beyond so it can securitize $300 million or more each month.

The CFPB and FHFA said Thursday they are teaming up to create a first-of-its-kind mega-database of mortgages to track market trends and support policymaking research.

The right price for private capital is a moving target. Much depends on regulations over legal liabilities and risk retention requirements for originators that are still in flux.

Since hitting a record low of 3.36% in the first week of October, 30-year rates have held to narrow range of 3.37% and 3.41%.

However, the widespread damage from Hurricane Sandy might result in a modest and temporary rise in mortgage delinquencies, Fitch Ratings said in a report released last yesterday.

Ally Financial said Wednesday that it has repaid $2.9 billion of debt issued under the Federal Deposit Insurance Corp.’s Temporary Liquidity Guarantee Program.