Securitization

It is now clear that Fannie Mae and Freddie Mac are willing to make peace with banks by settling mortgage repurchase claims for some cash.

Janney Capital Markets named Noam Saxonhouse as director in real estate investment banking.

The multifamily REIT sector is now in a period of sustained improvement in terms of its fundamentals, said Moody's Investors Service in a new report released today.

The housing overhang, according to Amherst Securities Group (ASG) analysts in a report released today, is not only caused by the number of nonperforming loans currently in the market.

Sallie Mae has closed its deal to buy $27 billion of securitized federal student loans and related assets from Student Loan Corp. (SLC), which is majority-owned by Citibank.

November was the best month of 2010 so far for the nation's private mortgage insurers in terms of new insurance written (NIW), while it was the second best for new applications.

Real estate services and investment firm Grubb & Ellis Co. has predicted a slow recovery in the leasing market for all property types in the coming year.

Moody's Investors Service late last week downgraded $729 million of payment option ARM securities issued by Washington Mutual, Seattle, which is now the property of JPMorgan Chase.The collateral backing the securities includes first-lien, adjustable-rate, negative amortization mortgages.

Bank of America on Monday morning agreed to pay $2.8 billion to Fannie Mae and Freddie Mac to resolve outstanding repurchase requests on loans Countrywide Financial Corp. sold to the GSEs.

Though the Basel II process to write new international capital standards lingered for nearly a decade, its successor has come a remarkably long way in just the past year.

Heading into 2011, several Wall Street firms favor an overweight to the mortgage basis. Valuations are expected to be attractive given the muted prepayments and generally favorable supply/demand technicals.

While not quite the same as the agonies of 2007 and 2008, 2010 was another calamitous year for the mortgage and MBS markets. Here are my expectations on a variety of topics for 2011.

The improper transfer of the promissory note - the borrower's promise to pay - to the securitization trust can create havoc in the process. However, the resolution of this problem could serve to re-start the private-label RMBS market. Are the note transfer contrarians MBS reformers or charlatans?

One of the biggest challenges for the securitization industry in 2011 will be managing through the host of regulatory changes that are set to shape its future.

Recent attacks on securitization have centered on its legal soundness.

The need for national loan servicing standards has been recognized by regulators as well as securitization and servicing market participants.

Policy changes including the potential extension of the government's Home Affordable Refinance Program (HARP) in 2011 to all GSE loans can result in faster prepayment speeds on agency mortgages, said Barclays Capital in its 2011 outlook report.

Latin America's two largest markets - Brazil and Mexico - will present ABS players with different sets of risks and opportunities next year.

Russia, Turkey and neighboring emerging markets saw only scattered ABS issuance last year, and that largely depended on support from government-linked institutions, development banks or regular bank funding. Bond investors were mostly absent.

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