RMBS

New home sales fell 17% in February to the lowest level on record with cancellations ticking up again as buyers continue to deal with tighter mortgage underwriting standards.

In a new forecast on the housing market, Fannie Mae economists remain cautious about demand citing "consumer uncertainty" which will translate into declining originations.

Fitch Ratings’ review of 1,246 rated subprime RMBS issued between 1993 and 2008 shows that, on average, losses are relatively stable and expected defaults are still improving, but continuing housing market weakness and foreclosure delays are still driving expected loss severities higher.

Aegon Levensverzekering N.V. is in the market with a €1.5 million Dutch RMBS from its Saecure securitization program.

SunTrust Banks late Tuesday named Jerome Lienhard president and chief executive officer of its mortgage division, the nation's 11th largest originator of residential loans.

The 11 banks contesting MBIA’s February 2009 restructuring have long said the regulatory process allowing the move was based on outdated and inaccurate financial information. Now, they have evidence.

Mortgage application activity increased 2.7% for the week ending March 18 in response to attractive mortgage rate levels.

Brazilian securitization consultancy Uqbar said in a report that 2010 issuance of CRIs, the main vehicle for real estate securitization in the country, hit R$8.53 billion ($5.1 billion) last year (see chart below). This was more than double the figure for 2009.

Northern Rock said it is launching its first public securitization issue, which is in line with its agreed strategy. This transaction will diversify both the source and term of its funding base, and will be offered to investors in sterling and euros.

Forthcoming regulations could make conventional mortgages more expensive to the wide swath of homebuyers and owners who can't put 20% down, depressing originations and potentially undermining the housing recovery.