RMBS

ABS market players have certainly learned their lesson from the problems that led to the financial crisis.

The Securities and Exchange Commission (SEC) put on hold one change that could have shuttered the ABS market starting in early January. But a long line of proposals marching into 2011 will keep ABS compliance departments busy and, in some cases, may fundamentally alter the market.

Many segments of U.S. structured finance were forced to play defense to varying degrees during the last few years in light of this past economic recession. Much of 2010 was viewed as a year of 'lessons learned'. But now with the economic recovery slowly underway, we may finally begin to see U.S. structured finance turn the corner towards stability in 2011. Fitch's Rating Outlook for U.S. structured finance is Stable.

The landscape for non-agency RMBS has dramatically changed and, given the variables that banks must contemplate, it is unlikely that 2011 will see the clarity needed to drive origination volumes in the non-agency space.

For the first time since significant mortgage servicing problems came to light, federal regulators called on Congress Wednesday to establish national standards for the foreclosure process.

HeartLand Financial USA, Dubuque, Iowa, has hired a former Bear Stearns Residential Mortgage (BSRM) executive and his team from a failed Arizona thrift to lead what it hopes will be a growing mortgage operation.

Federal Deposit Insurance Corp. (FDIC) chairman Sheila Bair is calling on Treasury officials to streamline the loan modification process and require writedowns of second mortgages.

The Bank of England issued a market notice indicating that it plans to move ahead with new disclosure requirements, according to a Reuters report.

Thomas Parachini has joined SNR Denton's London banking and finance department.

The Office of the Comptroller of the Currency (OCC) is ordering servicers under its purview to stop dual tracking foreclosure proceedings and loan modifications whenever legally possible.