Securitization

Mortgage bankers likely won't see any official proposals to revamp servicing compensation until late summer, Ginnie Mae president Ted Tozer said Friday morning.

Redwood Trust's recent RMBS deal has been lauded by Fitch Ratings as implementing several important structural features that further reduced credit risk exposure for its senior bond investors. These are an improvement over 2005-2007 vintage prime deals.

In October 2008, 11 state attorneys general settled a lawsuit with Bank of America Corp. that was supposed to provide relief for up to 400,000 homeowners.

Freddie Mac purchased $38.9 billion of home mortgages from its seller/servicers in February, a slight gain from January, according to figures released Friday morning.

Although bankers are likely to have significant concerns about the risk retention proposal due next week, they appear to have won at least one victory already: a choice over how to structure risk that must be retained.

With principal reduction modifications a key component of the preliminary term sheet that was recently released by the State Attorneys General, there has been more attention placed on the success of these loan modification programs and their accompanying moral hazard issues, analysts said.

Regulators and politicians alike believe covered bonds could help fill the void created when and if Fannie Mae and Freddie Mac are dismantled, but right now one of the biggest stumbling blocks to the market moving forward is the Federal Deposit Insurance Corp. (FDIC).

A private securities market set up exclusively for prime mortgages can be developed and attract investors as Fannie Mae and Freddie Mac are phased out, according to three American Enterprise Institute fellows.

Kondaur Capital Corp., Orange, Calif., is the winning bidder on a 1,000 unit nonperforming mortgage portfolio auctioned off by the Department of Housing and Urban Development (HUD).

CoreLogic has introduced IntelliMod, a Web-based application that accelerates loan modifications that automates decisioning and fulfillment for both government and private investor programs.

Mortgage rates eased back from their recent lows as Treasurys sold off beginning late last week. This was after the market experienced a strong flight to safety gains and news broke out on Monday that the Treasury will begin selling its MBS holdings.

The CRE Finance Council (CREFC) released its comprehensive and complete market standards for CMBS 2.0.

During the housing boom Robert Shiller, co-creator of theCase-Shiller Home Price Index, stood out (and endured taunting) for his pessimistic views on the market. Now he's in good company.

Discover Financial Services said it has benefited from making fewer bad loans but said much of its growth may actually come from products other than credit.

Goldman Sachs is among a handful of Wall Street banks negotiating with National Credit Union Administration (NCUA) on potential compensation for toxic MBS the investment banks sold to the five failed corporate credit unions.

Roseburg Forest Products is marketing a $295 million securitization called Oxbow Resources Timberland Notes 2011-1.

The more than $113 billion New York City Pension Funds have been granted right of passage by the Securities and Exchange Commission (SEC) to present a foreclosure request on big bank shareholder ballots.

Four state attorneys general have sent a letter to Iowa AG Tom Miller objecting to provisions of the 27-page proposed settlement with the top five servicers.

In a recent report, Fitch Ratings said that risks inherent in Brazilian multi-seller/multi-obligor ABS have become more heightened in recent deals backed by factoring company receivables. Generally, factoring companies in Brazil are privately held businesses that buy trade receivables from a variety of companies at a discount.

New home sales fell 17% in February to the lowest level on record with cancellations ticking up again as buyers continue to deal with tighter mortgage underwriting standards.