Securitization

Although refinancing has continued to be muted given all the post-downturn market conditions that counteract today’s rates, reaction to recent prepayment reports show some speeds are still surprising to the upside in some cases.

The Royal Bank of Scotland (RBS) is looking to get back into the U.K. RMBS sector with a deal from its resurrected master trust structure called Arran, according to market reports.

LRG Capital Real Estate Partners plans to launch a new fund targeting institutional investors.

Macquarie Group said it acquired 100% of the membership interests in Presidio Partners, a real estate private capital raising and advisory company based in the U.S.

Bank of America Corp., the nation's largest servicer of home mortgages, should repurchase up to $20 billion of loans that were based on wrong or missing information, according to a bond insurer trade group.

Independent mortgage banking firms earned an average profit of $917 per loan originated in the second quarter, a 51% increase from the first quarter as production volumes increased and personnel costs fell.

Mexican state agency Infonavit is nearly out with its third RMBS this year for 1.3 billion inflation indexed units ($422 million). The deal is due to price Sept. 10.

Mexico’s Federal District is eyeing early October for a re-opening of a Ps2 billion ($154 million) deal closed June 25, according to a prospectus filed with the Mexican Stock Exchange. The transaction adheres to a formula the originator established with its first issue in December 2003 — the securitization of a loan from the central government, with payments backed by federal participation revenue which the central government doles out to the District. The loan is a necessary step as the District isn’t allowed to take on debt directly. The re-opening is for both a 10 and 10-2 series. The former is a fixed-rate tranche with a 5-year tenor and the latter is a floater with a 10-year tenor. The total volume of the re-opening is capped at Ps3.3 billion, given that total program has a ceiling of Ps5.3 billion. Deutsche Bank is the sole lead.

Fannie Mae 30-year MBS prepaid faster than expected in August. Speeds increased 20% in August from July versus a projection of +14%.

The Basel Committee, representing the Group of Ten nations, sent shivers up the spines of bankers last December when it released its Basel III proposal requiring them to hold significantly more equity to meet higher capital requirements.

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

Fannie Mae wants out of its defaulted residential mortgage holdings as quickly as possible and is warning loan servicers not to stand in its way.

A majority of the largest national banks tightened their underwriting standards on home mortgages during a 12-month period ending March 31, according to a new report released by the Comptroller of the Currency (OCC).

The National Association of Insurance Commissioners (NAIC) has chosen Blackrock Solutions to assist state regulators as they determine risk-based capital (RBC) requirements for the CMBS held by insurers.

The GSE regulator Thursday issued new affordable goals that Fannie Mae and Freddie Mac are expected to meet this calendar year.

Citigroup has arranged a $600 million CLO that will be managed by Guggenheim Investment Management, according to sources.

Mortgage companies added 2,300 full-time employees to their payrolls in July as refinancing applications swelled, compensating for a weak purchase money business.

America First Tax Exempt Investors said Thursday that it has financed approximately $95.8 million through a new long-term secured debt financing facility with Freddie Mac.

The days of bailouts of large financial institutions are officially over, Federal Reserve Board Chairman Ben Bernanke said Thursday.

Volkswagen Leasing has no plans to issue a privately placed auto ABS deal but it is currently marketing the new VCL 12 deal to investors.