Securitization

Fannie Mae said Friday that it lost $3.46 billion during the third quarter, as it paid a $2.12 billion dividend payment to the government.

The foreclosure document debacle, a huge embarrassment and liability for mortgage servicers, could soon also ensnare the banks that act as trustees for securitizations.

House price appreciation may not be what it used to be, but most participants in the National Association of Realtors' (NAR) annual profile of buyers and sellers still believe home ownership is a sound investment.

ABCP conduit professional Mary Logan has opted to take a package from Barclays Capital the last week of October to take a career break.

Redwood Trust, the only company to securitize jumbo loans during the past two years, has pushed backed its second deal to early 2011 because of a lack of available product.

Structured finance advisory firm Paladin Advisors hired Steve Campo as a managing partner in advisory services. Campo has over 30 years of experience as an accountant, issuer, financial guarantor and advisor in the ABS industry.

Citigroup Inc mortgage bond investors, including Charles Schwab Corp and hedge fund Cambridge Place Investment Management, have filed suit against the bank over its home loan underwriting processes, according to a Reuters report.

House prices look set to remain on a downward trajectory and is likely to keep repayment rates in U.K. RMBS low.

BlackRock is planning to launch a fund that will begin financing U.S. home loans specially made for a new kind of RMBS, according to a Reuters report.

Commercial and multifamily mortgage originations are at their highest level in nearly two years — driven by sequential growth in the health care and multifamily sectors.

Banca Monte dei Paschi di Siena is in the market with a €3.47 billion ($4.9 billion) Italian RMBS deal, a rarity among a primarily U.K. and Dutch dominated European RMBS market.

The 30-year fixed mortgages averaged one basis point higher to 4.24% with an average 0.8 point in the week ending Nov. 4, according to Freddie Mac.

Independent broker-dealer Braver Stern Securities hired Peter Howard as a managing director and head trader of CDOs, CLOs and esoteric ABS.

Fitch Ratings assigned a Negative Outlook for the entire U.S. residential mortgage servicer ratings sector on increased concerns surrounding alleged procedural defects in the judicial foreclosure process.

U.K.-based Future Capital Partners (FCP) appointed three senior investment professionals to its growing real estate team.

CMBS spreads tightened on the back off better-than-expected CMBS loss projections from BlackRock.

KfW Banking Group said it participated as an anchor investor in securitizations focusing on SMEs worth €0.7 billion ($1 billion) up to the end of the third quarter.

Last Monday the National Association of Insurance Commissioners (NAIC) published the responses to questions from its Oct 28 RMBS/CMBS conference call.

Mortgage application activity was mixed in the week ending Oct. 29 with refinancing activity declining, while purchases rose.

The Federal Reserve will move ahead with its much-speculated second round of quantitative easing to promote a stronger economic recovery pace and to ensure that inflation, over time, remain at levels consistent with its mandate.