Securitization

The federal government’s Financial Crisis Inquiry Commission (FCIC) has subpoenaed Moody’s Corp. for allegedly failing to provide requested information.

Lenders would be exempt from risk retention ratios on MBS issuance if they originate low-risk, fully documented mortgages under an amendment Senator Johnny Isakson, R-Ga., plans to offer when the Senate takes up the regulatory reform bill.

Deutsche Bank said Tuesday that it has made seven new hires for its emerging-markets business in Brazil and Mexico.

PennyMac has named former Bank of America executive Steve Bailey as its chief servicing officer, effective immediately.

In a survey Fannie Mae conducted in December and January, two-thirds of the 3,000 respondents — a group including renters, homeowners with a mortgage and those who owned their home outright — said they still wanted to own a home and nearly 90% said they thought it was wrong to walk away from an underwater mortgage.

The Senate Agriculture Committee voted 13 to 8 to approve a tough bill to regulate derivatives on Wednesday, with one Republican — Sen. Charles Grassley — supporting the measure.

The American Securitization Forum (ASF) today welcomed Redwood Trust's launching of the first private label security backed by newly originated RMBS loans since 2008.

Refinancing and purchase activity also increased as a result of the improved borrowing rates.

Deutsche Bank named Pius Sprenger as head of trading for ABS and CDOs, replacing Greg Lippmann, according to a report from Bloomberg, which quoted two people familiar with the matter who declined to be identified.

Former President Bill Clinton now says he had an inadvertent role in the credit crisis and the Securities and Exchange Commission’s civil fraud case against Goldman Sachs by signing the Commodity Futures Modernization Act in 2000, exempting derivatives from meaningful regulation.

The Securities and Exchange Commission's (SEC) actions against Goldman Sachs have sent credit default swap spreads spiraling wider not only for Goldman, but for the entire banking sector, Fitch Solutions said in a release.

First California Mortgage (FCM) of Petaluma said it began originating loans under a new Fannie Mae warehouse pilot program last week — 90% of it coming from loan brokers.

The nation's GSE regulator wants more information about the Federal Home Loan Bank of Seattle's capital restoration plan before it lifts the bank's "undercapitalized" designation.

The auction of nonperforming loans will remain strong for six more years, with hedge funds and private investors continuing to drive the market, according to specialty servicer FCI Lender Services, Anaheim Hills, Calif.

The Reserve Bank of India (RBI) placed on its Web site a discussion paper titled Emerging Trends in Regulation and Supervision of Securitization Activities of Banks.

The Mortgage Bankers Association (MBA) promoted Josh Denney to vice president of public policy.

Vesteda, the Netherlands residential property investment fund, launched a EUR 350 million ($470 million) CMBS tap issue from its Vesteda Residential Funding II BV program.

The Committee of European Securities Regulators (CESR) published three consultation papers on its technical advice to the commission in its review of Markets in Financial Instruments Directive (MiFID).

Moody's Investors Service has hired Andrew Jones, who was formerly from DBRS, for a newly created position to help the rating agency boost its efforts in structured finance research.

Alectra Finance is in the market with a €1.197 billion ($1.62 billion) securitization of the 2005 Spanish electricity tariff deficit.