Securitization

Concerns that housing and employment woes will persist into the second half of next year have contributed to a rating criteria change at Moody's Investors Service that leaves thousands of prime jumbo RMBS on review for possible downgrade.

The Federal Deposit Insurance Corp. (FDIC) is contemplating securitizing at least $10 billion of delinquent and underperforming whole loans belonging to failed banks in the first quarter, according to investment banking sources who have been briefed about the plan.

The Bank of England said today in its Financial Stability Report that banks should make the most of strong profits and relatively stable financial markets to bolster their weakened balance sheets and protect themselves against any future worsening in macroeconomic conditions.

Moody's Investors Service updated its approach for analyzing set-off risk in U.K. securitization and covered bond transactions.

Bank of America Merrill Lynch has nabbed a JPMorgan veteran to head up its Americas primary loan sales unit, the New York-based banking giant announced yesterday.

The Securities and Exchange Commission (SEC) today charged the U.S. subsidiary of U.K.-based ICAP with fraud for engaging in deceptive broking activity and making material misrepresentations to clients about its trading activities.

President and CEO of the Mortgage Bankers Association (MBA) John Courson strongly endorsed President Obama's announcement of his intention to nominate Theodore W. Tozer as Ginnie Mae president, calling on the Senate to quickly take up and approve the nomination.

By the end of the third quarter the estimated number of homes heading toward foreclosure but not yet included in "unsold inventory" figures reached 1.7 million, up from 1.1 million a year earlier, according to new First American CoreLogic data.

Loan Value Group (LVG), Rumson, N.J., is close to partnering with a national mortgage lender to begin rolling out a patent-pending program aimed at heading off "strategic default," according to industry sources. An LVG representative declined to comment and the lender was not identified.

Over the objections of several key lawmakers, including Sen. Richard Shelby, the Senate Banking Committee approved Federal Reserve Chairman Ben Bernanke's nomination on Thursday to lead the central bank for another four years.

Fitch Ratings placed $20.6 billion in bonds in 33 floating-rate CMBS deals on Rating Watch Negative.

The Loan Syndications and Trading Association (LSTA) has appointed Bram Smith as executive director of the organization, it announced today.

For all of the upheaval the housing finance system has sustained in the past 18 months, the mechanics of the mortgage market remain remarkably unchanged.

Out of an original field of 10 or so bidders, Selene Residential Mortgage Opportunity Fund — which includes MBS co-inventor Lewis Ranieri — has won the auction for roughly 1,000 REO properties that belong to the bankrupt Taylor, Bean & Whitaker of Ocala, Fla.

In setting standards for bank securitizations, the Federal Deposit Insurance Corp. (FDIC) is seeking comment on changing the way residential servicers are compensated.

The Federal Open Market Committee minutes released Wednesday suggest the Fed is still on track to complete its MBS purchases by the end of the first quarter while keeping the target for the short-term Federal funds rate exceptionally low for an extended period.

KfW Bankengruppe said that the securitization markets continue to be in a very difficult situation. Although some transactions took place in the course of the year, a functioning, liquid market is still very far away.

Distressed debt investment opportunities are drying up in the U.S., according to a report. The news follows consistently declining distressed debt ratios.

Two "ratepayer obligation charge" deals are in the market from Potomac Edison Co. and Monongahela Power Co. The deals are $22.4 million and $67 million, respectively.

Federal regulators are giving banks a one-year transition period to deal with the risk-based capital implications of moving certain mortgage securitizations onto their balance sheets due to recent accounting rules changes that go into effect Jan. 1.