RMBS

The due-diligence firms that vet loans before securitization are erring on the side of caution when assessing the risk to investors of liability from the new consumer mortgage disclosure rules.

New Residential is marketing another $301 million securitization of re-performing mortgage loans, according to Moody's Investors Service.

A committee convened by the Federal Reserve to examine potential replacements for widely used interbank offered rate benchmarks has published its interim conclusions, identifying two potential alternatives.

Real estate investment trust Colony Starwood Homes is issuing its first securitization of single-family rental homes since it was created out of the merger of Colony American Homes (CAH) and Starwood Waypoint Residential Trust (SWAY) last January. Colony Starwood Homes 2016-1 is backed by a single $538 million loan secured by the investor-owner mortgages in 3,566 homes.

The $874.8 million in notes is backed by 4,053 individual loans by borrowers with blemished credit, but with rehabbed loans that have an average seasoning of 102 months. The borrowers have been current for at least the last 24 months.

A subsidiary of Goldman Sachs purchased all four pools in Fannie Mae's latest nonperforming loan sale.

The government-sponsored enterprises' risk-sharing deals are being hailed as an innovative approach for Fannie Mae and Freddie Mac to offload credit exposure to private markets. But their growing popularity is raising questions about how these transactions should be reported in financial statements.

Colony American Finance is going to issue $254 million in new notes backed by the mortgage loans of landlords of the fledgling multi-tenant and single-family residential securitization market. .

Legislation that would authorize the use of private flood insurance on Fannie Mae and Freddie Mac mortgages was overwhelmingly approved by the House late last month, but concerns about its potential impact are beginning to crop up.

The early performance of bonds backed by rehabbed residential mortgages is pretty strong, according to Fitch Ratings.