Securitization

Freddie Mac recovered $1.7 billion from its seller/servicers in the third quarter, taking in cash or getting bad loans off its books because firms that sold mortgages to the GSE bought them back.

Ally Financial on Wednesday reported a third-quarter profit of $269 million, its third consecutive quarter in the black, driven by strong results in both its mortgage banking, and automotive finance units.

After pricing a sizeable securitzation backed by residential mortgages in mid-September, the National Credit Union Association (NCUA) is in the market again. This time the NCUA is out with a CMBS transaction worth $3.76 billion.

The CMBS delinquency rate dropped sharply in October. The biggest reason for this dip was due to loans being liquidated at a faster pace and leaving the universe of troubled assets, according to a report from TreppWire.

A FFELP-backed student loan ABS is in the market called Panhandle-Plains Higher Education Authority 2010-1.

In the face of the increasingly uncertain mortgage environment, many investors are electing to lock in gains before yearend in the non-agency space.

Principia Partners recently surveyed over 500 investors, issuers, regulators and other structured finance professionals on the subject of investor due diligence.

Ginnie Mae later this month will start providing MBS investors with new information about the percentage of modified single-family mortgages in its MBS pools.

Katten Muchin Rosenman hired five structured finance lawyers from Dewey & LeBoeuf, including five structured finance partners in New York and a financial products tax partner in Washington, D.C.

First Horizon National Corp. (FHN) disclosed in a Securities and Exchange Commission 10-Q filing that it has been subpoenaed by the conservator for two GSE investors in six securitizations.

Some serious issues have arisen from conflicts created by the dual role that mortgage servicers play - where in several cases, the servicer is also the seller on a securitization deal.

Ally Bank, formerly GMAC Bank, is in the market with Ally Auto Receivables Trust (AART) 2010-4.

The great stumbling block to getting a mortgage-related covered bond market off the ground in the U.S. continues to be the Federal Deposit Insurance Corp. (FDIC)

Thanks to the national foreclosure mess, it could take up to 40 months to clear a 1.5 million unit "shadow inventory" tied to non-agency delinquent mortgages, foreclosures and REOs, according to a new report from Fitch Ratings.

Distressed loan investors in particular need to keep an eye on potential legal developments arising from recent foreclosure concerns because they could affect their rights one way or another.

The commercial real estate (CRE) markets are in for a long, slow recovery in the face of persistently high unemployment, ongoing concern over government policy, uneven availability of capital for refinancing, and other factors dampening market activity, according to The Real Estate Roundtable's fourth quarter survey of over 110 senior CRE executives.

Guy Carpenter & Co. and GC Securities said they have completed a deal worth €275 million ($385 million) Class A principal at-risk variable rate notes due January 10, 2014 from a newly created 144A catastrophe bond program called Calypso Capital.

American Home Mortgage Servicing (AHMSI) is in the market with a four-tranche deal totaling $1.3 billion called AH Mortgage Advance Trust 2010-ADV2.

Misleading MBS investments offered by Bear Stearns allegedly “directly smacked” the Oregon Public Employees’ Retirement Fund (OPERF) with more than $17 million in losses following the 2008 economic collapse, state officials said today in a suit.

Landon Parsons joined Moelis & Co. as senior advisor in the firm’s risk advisory group.