Securitization

Rates once again proved federal officials' go-to choice for economic policy action last week but when it comes to sizing up potential economic recovery as part of mortgage investment strategies one might do better these days watching jobs over the traditional duo of rates and real estate markets.

The New York Supreme Court on Monday denied Credit Suisse’s motion to dismiss MBIA Insurance Corp.’s claims of mortgage-related fraud and breach of contract.

Underwriters, financial advisers, and lawyers interested in working on Illinois’ proposed sale of up to $1.75 billion of tobacco bonds to provide budgetary relief have until Aug. 27 to submit proposals to the state.

Credit Suisse expects mortgage repurchase demands to remain strong throughout the remainder of the year, but believes the worst of it might be over when 2010 ends.

New Mexico Education Assitance Foundation is in the market with a $383 million transaction backed by FFELP loans.

During the boom years, mortgage lenders paid Fannie Mae and Freddie Mac a small fee for accepting stated-income loans. Today those lenders are paying a whole lot more.

Mortgage insurance companies, which have been bleeding massive amounts of red ink for two years, could see their prospects brighten in a post-Fannie Mae/Freddie world, according to one proposal making the rounds in Washington.

Cecile Houlot joined Morgan Stanley as managing director and head of its European securitization effort within the global structured solutions group.

Originator LEAF Funding Inc. (LFI), wholly owned by LEAF Financial Corp., is in the market with a $171.4 million transaction backed primarily by a pool of secured commercial loan contracts, finance leases and fair market value leases originated by LFI.

The Federal Deposit Insurance Corp. (FDIC) will soon post bi-weekly records of closed-door meetings it holds with bankers and other stakeholders regarding regulatory reform, the agency said Thursday.

Lewis Ranieri — the co-inventor of the MBS — and bond market maven Bill Gross are among a group of 12 speakers testifying next Tuesday at a Treasury forum on the future of the housing finance system, a discussion that will touch on what to do with Fannie Mae and Freddie Mac.

AmeriCredit priced another auto ABS wrapped by Assured Guaranty Corp. Back in late March, the auto firm priced another $200 million offering that was insured by Assured as well.

Jefferies hired John Ockerbloom as a managing director and U.S. head of real estate investment banking.

The Home Affordable Modification Program (HAMP) has succeeded in limiting the supply of distressed properties to hit the market and, as a result, has helped stabilize prices. That success may be short-lived.

Though payment card volume at many merchants is still down from a year earlier, a new report from Capital Access Network showed that the decline is slowing — and that spending at high-end restaurants is even increasing.

Fixed and hybrid ARM rates set new record lows for the week ending Aug. 12, according to Freddie Mac.

KDX Ventures, a joint venture between DebtX and KEMA Advisors, will sell $234 million in multifamily and healthcare loans for the U.S. Department of Housing and Urban Development(HUD).

Fortress Investment Group (FIG) has entered into a definitive agreement to acquire nearly 80% of American International Group (AIG) subsidiary American General Finance (AGF). The transaction is set to close at the end of 2011's first quarter.

Analysts at Barclays Capital expect the additional housing-rescue measures announced today will have little-to-no impact on agency prepayments.

Despite historically low mortgage rates, mortgage application activity increased just 0.6% for the week ending Aug. 6.