Securitization

Fannie Mae and Freddie Mac have taken a big chunk of the Jumbo mortgage market away from private investors since 2008 when Congress raised the maximum GSE loan limit to $729,750, according to researchers at the Federal Housing Finance Agency.

Ginnie Mae issuers sold $25.6 billion of MBS into the secondary market during May, down almost 4% from the previous month, according to new figures released by the Ginnie Mae.

Walter Investment Management Corp., Tampa, has reached another milestone in its efforts to raise capital to fund its purchase of Green Tree Credit Solutions, by closing on the private placement securitization of $102 million in notes backed by residential mortgages, building and installment sales contracts, promissory notes, related mortgages and other security agreements.

National Credit Union Administration (NCUA) filed suits this morning against JPMorgan Chase and RBS Securities claiming fraud in the sale of billions of dollars in private-label MBS the two investment firms sold to the five failed corporate credit unions.

Mexican housing authority the Sociedad Hipotecaria Federal (SHF) announced a plan June 2 to discontinue the origination of inflation-indexed mortgages, or UDI loans, in 2011.

Home price appreciation (HPA) is expected to hit bottom in 2Q11, according to the National Association of Realtors (NAR) Affordability Index, Bank of America Merrill Lynch analysts reported.

Ultimately, Ocwen Financial Corp.'s pending purchase of Litton Loan Servicing is likely to benefit the investors in the $45 billion of mortgages that Litton manages and some of the homeowners. That's because Ocwen has a record of moving faster than Litton to resolve troubled loans, either through modification or foreclosure.

Volkswagen is looking to sell its ABS in China by the end of 2012, according to a Bloomberg report.

Radian Asset Assurance announced the successful acquisition of Municipal and Infrastructure Assurance Corp. (MIAC) on Thursday, following the approval of its regulator, the New York Insurance Department.

Capital One Financial Corp. will acquire $41 billion of mortgage loans and $20 billion in various types of MBS as part of its $9 billion purchase of ING Direct USA.

When the largest lender –by far – in a mortgage niche exits the sector it usually signals that trouble is afoot. But according to the head of the National Reverse Mortgage Lenders Association (NRMLA), Wells Fargo’s exit from the reverse business is not a death knell.

The Federal Deposit Insurance Corp. (FDIC) is preparing $2 billion worth of structured asset sales that will hit the market shortly, a top agency official said Thursday.

Continuing its string of new hires, Barclays Capital has appointed Kenneth Rosenberg as part of its securitization syndicate team.

The Japan-based mobile telecommunications carrier called Softbank Mobile Corp. is marketing JPY 5.126 billion ($64 million) of senior trust certificates that are backed by handset installment sales receivables.

Like every sector in the European securitization market, CLOs are struggling with the onslaught of regulation.

Favorable regulatory treatment for the covered bond sector in Europe has spurred its growth. said panelists at the Global ABS 2011 conference held this week in Brussels.

Buysiders speaking at an investor roundtable panel said that understanding ABS collateral is key to structured finance recovery.

Despite the overall struggles and uncertainty of the mortgage industry in recent years, mortgage real estate investment trusts (REITs) enjoy a unique advantage over both banks and other non-bank entities, according to a report by Morrison Foerster.

Recent data on macroeconomic forces in the market, such as lower than anticipated GDP and consumer confidence, have and will continue to play a large part in redefining expected future growth in commercial real estate, said panelists speaking at the CRE Finance Council's (CREFC) annual June convention in New York City.

At one of the panels at the Global ABS 2011 conference being held in Brussels this week, participants discussed the new data disclosure requirements from the European Central Bank (ECB).