ABS

The government is moving closer to implementing a plan to guarantee two million to three million at-risk mortgages in return for an agreement from lenders to engage in systematic loan modifications.

Nelnet issued a statement yesterday about Moody's Investors Service's decision to downgrade the company's senior unsecured rating from 'Baa2' to ‘Ba1.’

Fannie Mae announced that it will be taking a valuation allowance against its deferred tax asset. Although the GSE said that the valuation allowance's amount has not yet been determined, it is likely to be substantially all of the value of the deferred tax asset as of Sept. 30.

The board of directors of the Securities Industry and Financial Markets Association (SIFMA) elected Blythe Masters as the trade association's chairman for 2009.

Auto and mortgage finance firm GMAC said yesterday that it had been approved to use the Commercial Paper Funding Facility (CPFF) ,which was created earlier this month and launched on Monday by the Federal Reserve, according to published reports.

Moody’s Investors Service Tuesday night downgraded bond insurer CIFG Assurance NA to 'B3' from 'Ba2', keeping its ratings review with direction uncertain less than a week after Assured Guaranty Corp. agreed to reinsure $13 billion of CIFG’s U.S. public finance book.

Responding to a news story it called inaccurate, United Capital Markets CEO John Devaney released a statement denying the allegations that appeared in a New York Post article. The news item detailed Devaney's being booed for his remarks at the recent Information Management Network ABS East conference, accounts of which were completely false.

The prices of existing homes declined at an unprecedented annual rate during the first half of this year, according to the Standard & Poor's/Case-Shiller home price indexes.

In his remarks at today's Securities Industry and Financial Markets Association (SIFMA) Under Secretary for Domestic Finance Anthony Ryan said that the subprime an Alt-A markets are not solely to blame for the country's current problems.

The Federal Reserve's Commercial Paper Funding Facility (CPFF), a move that offers a liquidity backstop for U.S. commercial paper issuers, was launched yesterday.

Stability was the word for the third straight month for U.S. prime auto ABS 60+ days delinquencies. Meanwhile, subprime auto ABS delinquencies hit an 11-year high, which possibly paves the way for a notably weaker fourth quarter, according to Fitch Ratings.

Remittance reports for the October distribution date, which represents the September collection period, showed mixed collateral performance.

The Federal Housing Finance Agency (FHFA) integrated three agencies under its umbrella.

HOPE NOW announced today that nearly 2.5 million homeowners have avoided foreclosure and been able to stay in their homes since July 2007 because of its efforts.

Sales of new single-family homes rose by 2.7% in September from the previous month to a seasonally adjusted annual rate of 464,000 units but the median price of a house fell to the lowest level in four years — $218,400, according to new government figures.

The Federal Deposit Insurance Corp. is in the process of mailing 15,000 loan modification proposals to mortgage customers of IndyMac Bank of California.

PNC Financial Services, which has limited participation in the mortgage business, may be wading back into the game with its purchase of National City Corp.

The Mortgage Bankers Association (MBA) appointed Catherine Cruz Wojtasik as associate vice president of legislative affairs. In her new role, Cruz Wojtasik will join MBA's lobbying team on Capitol Hill working with Members of the House of Representatives and Senate with an added focus on commercial issues important to MBA's members.

U.K charities have called on the Treasury to put pressure on Northern Rock to change its approach to property repossession. The charities said that the nationalized bank has been aggressive toward repossessions when borrowers fall behind with their mortgage repayments, because of its eagerness to repay the government.

It's going to take some effort for Mexican nonbank company Metrofinanciera to win back the confidence of the market.