RMBS

Residential Capital's (ResCap), Ally Financial's troubled mortgage unit, missed coupon payment indicated that it is heading toward bankruptcy. The firm might also be using the threat of a bankruptcy to get investors to reduce ResCap's debt burden, according to a Barclays Capital securitization research note.

The Mortgage Bankers Association reported a 13.5% jump in the Refinance Index to ~3935 for the week ending April 13. This is its highest level since the week ending March 9.

Construction of new single-family homes fell flat in March after dropping 9% in February, according to government figures released Tuesday morning.

More than five months after the Home Affordable Refinance Program (HARP) 2.0 was announced and there is not much seen in terms of the program's impact on prepayment data, according to FTN Financial in a report released yesterday.

More than 85% of the properties included in Fannie Mae's first REO rental pilot program are already teneted, Barclays Capital analysts reported in their latest securitization report.

Bankrupt bond insurer Ambac Assurance Corp. has sued Bank of America over MBS that have gone sour.

The residential mortgage division of Ally Financial missed a scheduled payment on its debt Tuesday, laying the ground work for an eventual default if the payment is not made quickly.

Political pressure backed with money can be very persuasive in Washington and it may provide relief for some underwater borrowers with Fannie Mae and Freddie Mac loans.

Assured Guaranty is saying Moody’s Investors Service should upgrade its bond insurance subsidiaries rather than continue to consider downgrading them.

CoreLogic has gained approval from Standard & Poor's to provide third-party due diligence for RMBS rated by the agency.