Securitization

After more than a year of negotiation, one of the most famous CMBS loans ever made has been modified.

Eleven years ago, AXA Investment Managers (IM) was one of the first firms to launch a European CLO, and through the most recent financial crisis, when so many new entrants to the European CLO space found it impossible to stay in business, its products were among the few survivors.

Conventional speed increases on average were in line with expectations. However, speeds on 5% coupons and lower were much faster than projected, while 6s through 7s were slower.

Almost three years to the day of seizing IndyMac Bank, the Federal Deposit Insurance Corp. (FDIC) launched a civil action against its former CEO, saying he "negligently" allowed the thrift to keep making risky loans despite signs of market stress.

Ambac Financial Group, the bankrupt holding company for bond insurer Ambac Assurance Corp., filed a plan of reorganization in bankruptcy court this week, but quickly came under criticism from the Wisconsin regulator in charge of overseeing Ambac Assurance.

The Obama administration announced plans Thursday to give unemployed homeowners struggling to make mortgage payments more time to avoid foreclosure.

Portugal and Greece won't lose access to European Central Bank (ECB) liquidity, said the ECB in separate announcements.

Moody’s Investors Service downgraded Portugal by four notches to 'Ba2' from 'Baa1' with a negative outlook yesterday.

ABN AMRO appointed Patrick Keleher managing director and head of loan syndication in North America, a new role at the Dutch firm.

Two separate MBS-related regulatory settlements involving hundreds of millions of dollars restitution to investors were seen late last month and the Securities and Exchange Commission (SEC) indicated similar cases would remain a priority for it in the future.

Moody’s Investors Services has downgraded the servicer quality (SQ) ratings of JPMorgan Chase and Chase Home Finance. The collective ratings in question are as primary servicer of prime residential mortgage loans from ' SQ1 ' to ' SQ2 ’, and as primary servicer of subprime residential mortgage loans from SQ1 to SQ2. Both will remain on review for possible further downgrade.

As federal agencies work on creating a new servicing fee structure, the Mortgage Bankers Association (MBA) is recommending they consider a reserve account that would be used to pay the higher costs of servicing delinquent loans.

FG Solutions International has formed a new ABS trading desk in North America to expand service offerings for investors and traders.

In a report released today, Moody’s Investors Service analysts discuss their methodology for the rating of consumer loan ABS transactions and provide their outlook on the securitization markets around the globe.

Not surprisingly mortgage rates were higher in Freddie Mac's latest survey due to last week's sharp sell-off as risk taking was favored. The 30-year fixed mortgage rates averaged 4.60% with an average 0.7 point in the week ending July 7, up nine basis points from last week.

In a few weeks the Consumer Financial Protection Bureau (CFPB) officially will open its doors, but it will be “months” before the agency promulgates any new servicing regulations, according to a top official there.

Federal housing regulators on Wednesday said they are lowering the conforming loan limit for Jumbo loans – the maximum loan they will buy from lenders – by almost 17%.

Lender Processing Services (LPS) CEO and president Jeffrey Carbiener is stepping down effective immediately for what the company said are significant health-related reasons.

Even if Congress and the Obama administration allow federal loan limits to fall back to pre-crisis levels in October, as expected, the limits will still be higher than they need to be, professors at The George Washington University School of Business have determined.

The Mortgage Bankers Association (MBA) is asking the Consumer Financial Protection Bureau (CFPB) to sit down with key stakeholders as it continues to revise mortgage disclosure forms.