RMBS

In a best case scenario, consumers might save upwards of $63 billion a year if Fannie Mae and Freddie Mac participated in a workable refinancing program for underwater borrowers, according to a new report from Moody's Investors Service.

Even though GSE and Federal Housing Administration (FHA) loan limits will decline to $625,500 at midnight Friday, borrowers with high balance FHA-insured loans can still refinance these products as long as they don't engage in a cash-out refinancing.

Irvine, Calif-based Carrington Mortgage Services some time this month is expected to issue its first GNMA security, one company official told ASR sister publication National Mortgage News recently. Carrington is a fast growing retail/wholesale lender.

DoubleLine Capital's the DoubleLine Funds Trust launched the DoubleLine Low Duration Bond Fund.

Santander Consumer is in the market with an auto deal under its Santander Drive Auto Receivables Trust 2011-4. The company filed with the Securities and Exchange Commission (SEC) for a $750 million offering.

The second edition of Mortgage-Backed Securities: Products, Structuring, and Analytical Techniques was recently released by John Wiley & Sons.

Moody’s Investors Service in a recent report warned of the danger posed to Hungarian covered bonds of a Sept. 19 law that allows mortgages denominated in foreign currency to be repaid in Hungarian forints. The exchange rate for the switchover represents a discount from the prevailing one.

Standard & Poor's, Moody's Corp. and Fitch won dismissal of a lawsuit alleging that their ratings of nonprime MBS were faulty and caused five Ohio public employee pension funds to buy into these money-losing investments.

The Federal Housing Finance Agency (FHFA) Tuesday afternoon released a 37-page "talking paper" on changing GSE servicing fees, while noting that Ginnie Mae compensation – for now – will not be part of the discussion.