Securitization

Conceptually speaking, packing thousands of modified Federal Housing Administration (FHA) loans into Ginnie Mae pools should reduce prepayment speeds. In fact, that’s what some Wall Street dealers were counting on, but it appears they bet the wrong way, and their securitization strategy backfired.

BlackRock hopes to invest upwards of $1 billion in jumbo mortgages with the hope of eventually issuing securities backed by the loans, according to secondary market officials familiar with the plan.

Venable hired five lawyers to its real estate group, led by three partners based in Washington DC, New York and Baltimore. The group was formerly at WilmerHale and has a combined 42 years of experience.

Federal regulators should allow three-year ARMs and certain interest-only loans to be classified as "qualified mortgages" that will be exempt from risk retention rules, according to the Mortgage Bankers Association (MBA).

Cole Real Estate Investments hired Eric Costa as director in the asset management and dispositions group as announced by Marc Nemer, the firm's president.

Ambac Financial Group hurried into bankruptcy protection this week because it was worried the Internal Revenue Service (IRS) might gut the entire company — including its sacrosanct bond insurance subsidiary, according to court documents.

CNH Capital America is in the market with a $721.201 million deal called CNH Equipment Trust 2010-C.

The Financial Industry Regulatory Authority (FINRA) said it fined Goldman Sachs $650,000 for failing to disclose that two of its registered representatives had received Wells Notices, which indicate that investigations of operating practices are under way.

Freddie Mac said it expects to offer around $1.1 billion in structured passthrough certificates (K Certificates), multifamily MBS.

Though the Consumer Financial Protection Bureau (CFPB) has jurisdiction over a wide range of financial products, Elizabeth Warren is making credit cards her top priority.

Amherst Securities is advising investors to be overweight on MBS, telling them that prepayment speeds are not really a factor – despite ultra low mortgage rates.

AmeriCredit Financial Services is further boosting volume in the auto sector with a deal called AmeriCredit Automobile Receivables Trust 2010-4 (AMCAR 2010-4).

Ambac Financial Group announced late Monday it filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York.

Despite waning demand for U.S. municipal bond insurance, a startup company believes there is value in credit enhancement among the world’s developing markets.

At a press conference following the European Central Bank's (ECB) rate decision last week, its President Jean-Claude Trichet said that the ECB is looking to create disincentives for banks who refinance exclusively through the bank.

Worker remittances to developing countries are projected to total $325 billion for 2010, up 5.9% from $307 billion last year, according to the World Bank’s Migration and Remittances Factbook 2011. The flows to developing countries are expected to continue growing in 2011 and 2012, potentially topping $370 billion within two years.

DBRS hired Mike Babick for its structured finance group as a senior vice president effective Nov. 1.

Italian bank Banca Monte dei Paschi di Siena (Banca MPS), currently marketing a new Italian RMBS, has also brought to market a €1.5 billion ($2.08 billion) sale and lease backed deal, according to published reports.

Markit has created the first electronic link between agent banks and lenders so that they can have real-time sharing of comprehensive agent data on syndicated loans.

Fannie Mae has named investment banker John Nichols chief risk officer for its capital markets division.