Securitization

Freddie Mac just released its quarterly report on cash-out refinancings for 4Q09. No surprise that the percentage of refinances resulting in a 5% higher loan declined to 27% from 36% in the third quarter. This is the lowest percentage going back to 1Q02.

The Australian government allocated up to A$3.4 billion ($3.1 billion) to five small lenders as part of its effort to boost the country's RMBS market.

Allonhill released a complete securitization solution for RMBS issuers and underwriters.

The domestic securitization markets of Mexico, Brazil and Argentina, which are the biggest in Latin America, should gradually recover in 2010, said Moody's Investors Service in its annual review and outlook report on structured finance in the region.

ABS issuers priced a number of deals that were issued outside the Federal Reserve’s Term Asset-Backed Securities Loan Facility (TALF).

Clayton Holdings hired Raymond A. Redlingshafer as senior managing director.

Mortgage rates recorded further easing in the week ending Jan. 28, according to Freddie Mac.

The Federal Reserve officials continue to take a wait-and-see approach to ending their $1.25 trillion MBS purchase program by the end of this quarter, according to a statement issued by the Federal Open Market Committee (FOMC).

Calyon will change its name to Credit Agricole Corporate and Investment Bank, effective Feb. 6.

The New York Federal Reserve rejected five while accepting 46 bonds for the January Legacy CMBS TALF subscription period.

Nixon Peabody expanded its securitization and structured finance group as well as its corporate trust team.

Hannover Re boosted its "K6" catastrophe bond transaction, which was launched in 2009, by the maximum targeted amount of $152 million.

Bank of America is the first mortgage servicer to sign an agreement formally committing to participation in the pending second-lien component of the federal government's Home Affordable Modification Program (HAMP).

Mortgage application activity declined 10.9% on a seasonally adjusted basis for the week ending Jan. 22 despite mortgage rates dipping to 4.99% from 5.06% based on Freddie Mac's survey.

Investment management firm Babson Capital Management has been selected by the controlling class of investors to serve as successor collateral manager of two CDOs previously managed by Tricadia Loan Management.

MGIC Investment Corp., the largest mortgage insurer in the nation, lost $280 million in the fourth quarter, its tenth straight quarterly loss.

BMW priced its auto-backed ABS transaction yesterday. Around 50 investors placed €2.2 billion orders for the €742m A Class notes of the car company's auto ABS Bavarian Sky 2, according to published reports.

Matthew Lindsay joined the banking team at Wedlake Bell as a partner. Lindsay was previously partner and head of real estate finance at Mishcon de Reya.

Home prices fell 0.2% in November on a seasonally adjusted basis after leveling off in October, suggesting the housing market has lost momentum and values could decline over the winter months, according to the Standard & Poor's/Case-Shiller 20-city price index.

The Securities Industry and Financial Markets Association (SIFMA) expressed its approval of the Federal Deposit Insurance Corp.'s (FDIC) reported plan to securitize around $36 billion of failed bank assets. This is in an effort to support the restart of the securitization industry.