ABS

The current crisis has drawn into sharp focus concerns that structural features in some securitization transactions may need to be re-assessed to ensure they are adequate in mitigating the impact arising from possible failures of servicers or other transaction parties. Moody's believes that the performance of a securitization transaction depends not only on the underlying collateral performance but also on the effective performance by such transaction parties of their responsibilities. Our November 2009 publication on this topic, Operational Risks in Securitizations to be Revisited, cites several occurrences where nonperformance of a transaction party may have detrimental effects on a transaction's performance regardless of the underlying pool's performance. We refer to this risk as "operational risk,"

Securitization Focus

Recently the Securities and Exchange Commission (SEC) granted a temporary exemption from Rule 17g-5(a)(3) for credit ratings provided to most ABS, MBS and other structured finance securities of non-U.S. issuers. This reprieve expires on Dec. 2 and extends from June 2, which is the rule's effective date for domestic firms.

After two years of hibernation, the non-agency RMBS may be re-emerging.

The current crisis has drawn into sharp focus concerns that structural features in some securitization transactions may need to be re-assessed to ensure they are adequate in mitigating the impact arising from possible failures of servicers or other transaction parties. Moody's believes that the performance of a securitization transaction depends not only on the underlying collateral performance but also on the effective performance by such transaction parties of their responsibilities. Our November 2009 publication on this topic, Operational Risks in Securitizations to be Revisited, cites several occurrences where nonperformance of a transaction party may have detrimental effects on a transaction's performance regardless of the underlying pool's performance. We refer to this risk as "operational risk,"

Securitization Focus

Recently the Securities and Exchange Commission (SEC) granted a temporary exemption from Rule 17g-5(a)(3) for credit ratings provided to most ABS, MBS and other structured finance securities of non-U.S. issuers. This reprieve expires on Dec. 2 and extends from June 2, which is the rule's effective date for domestic firms.

After two years of hibernation, the non-agency RMBS may be re-emerging.

The current crisis has drawn into sharp focus concerns that structural features in some securitization transactions may need to be re-assessed to ensure they are adequate in mitigating the impact arising from possible failures of servicers or other transaction parties. Moody's believes that the performance of a securitization transaction depends not only on the underlying collateral performance but also on the effective performance by such transaction parties of their responsibilities. Our November 2009 publication on this topic, Operational Risks in Securitizations to be Revisited, cites several occurrences where nonperformance of a transaction party may have detrimental effects on a transaction's performance regardless of the underlying pool's performance. We refer to this risk as "operational risk,"

Securitization Focus

Recently the Securities and Exchange Commission (SEC) granted a temporary exemption from Rule 17g-5(a)(3) for credit ratings provided to most ABS, MBS and other structured finance securities of non-U.S. issuers. This reprieve expires on Dec. 2 and extends from June 2, which is the rule's effective date for domestic firms.

After two years of hibernation, the non-agency RMBS may be re-emerging.

Manager Activity: Autos Book Runner Amount (US$ Mil) Rank Mkt.

Barclays Bank has agreed to sell HomEq Servicing, its U.S. mortgage servicing business, to Ocwen Loan Servicing, a subsidiary of Ocwen Financial Corp.

The Federal Deposit Insurance Corp. (FDIC) next week will begin exploring investor appetite for $1 billion worth of mostly nonperforming whole loans that belonged to the now-defunct AmTrust Bank of Cleveland, market sources told National Mortgage News.

The mortgage industry is getting a handle on the Brave New World it is currently in, but it still seems a little unsure about which way it is headed due to two recent developments muddying housing and interest rate outlooks.

Allonhill hired Fidelity Southern Corp. executive Kathy Ireland as director of securitizations.

William Isaac, former Federal Deposit Insurance Corp. (FDIC) chairman and an opponent of the mark-to-market accounting regime proposed by the Federal Accounting Standards Board (FASB), believes the recently announced proposal to expand the regulation may cause a dire and difficult situation for already struggling lenders.

Credit performance managed to improve slightly in European structured finance transactions in 1Q10 as the number of upgrades rose for the first time in several quarters, according to Standard & Poor's.

Alliance & Leicester's Fosse 2010-2 transaction was launched and priced yesterday afternoon after a two-week delay.