Securitization

Financial Guaranty Insurance Corp. (FGIC) has been blocked from paying claims until it repairs its tattered finances under an order from New York State regulators.

Bennett Jones hired two securitization professionals Michael Clifford and Peter Westcott, who were formerly at Davies Ward Phillips & Vineberg.

Commercial banks originated $405.6 billion of residential mortgages in the third quarter, down 25% from the second quarter.

Standard & Poor’s today downgraded to 'BB' from 'BBB-' the financial strength, financial enhancement, and corporate credit ratings of bond insurer Radian Asset Assurance. Radian will remain on negative watch.

Home prices rose 0.3% in September, compared to 1.2% in August, according with the Standard & Poor's/Case-Shiller 20-city house price index, which posted its fourth consecutive monthly increase.

Freddie Mac said in a new public filing that not only does it have financial exposure of almost $1.1 billion due to the failure of Taylor, Bean & Whitaker (TBW) but it faces additional losses on the company that "could be significant."

A banker previously from Merrill Lynch who led ABS sales for Japanese gaming parlors plans to set up a 100 billion yen ($1.1 billion) fund to invest in Asian distressed assets for Zais Group, according to a Bloomberg report.

Swiss Re transfered $75 million of U.S. and U.K. extreme mortality risk to the capital markets through a new securitization program called VITA Capital IV Ltd.

The New York Federal Reserve rejected three bonds for the November Legacy CMBS Term ABS Loan Facility (TALF) subscription, while accepting 60.

Citigroup is reporting a higher redefault rate on home loans it has modified and signs of heightened risk in its servicing portfolio.

The U.S. government insurance fund — used to safeguard bank deposits — dropped to a balance of negative $8.2 billion in the third quarter, according to market reports.

The DDR deal's pricing at better-than-expected spreads is undoubtedly a positive for the CMBS market, but it might have resulted in some misplaced market optimism, said Malay Bansal, managing director at NewOak Capital.

Bank of New York Mellon's BNY ConvergEx Group, a provider of investment and execution technology, will buy NorthPoint Trading Partners, a prime brokerage services boutique, ConvergEx announced Monday.

The new credit card law, enacted in the depths of a recession, cracks down on issuers' longstanding practices, but could also indirectly benefit the companies in an economic recovery.

CIT Group, which filed for bankruptcy on Nov. 1, said 88% of investors solicited in a recent vote supported its prepackaged reorganization plan.

Adverse economic conditions are continuing to weigh on asset performance in Spanish securitizations backed by loans to small and medium-sized enterprises (SME ABS), Moody’s Investors Service said in a report.

Harley Davidson is in the market with an ABS deal backed by motorcycle loans. The offering, which is eligible under the Term ABS Loan Facility or TALF, is lead by JPMorgan Securities, BNP Paribas, RBS Securities and Citigroup Global Markets.

Despite the different negative indicators, U.S. auto ABS delinquency and annualized net losses (ANL) improved at a time of the year when performance usually starts to deteriorate, Fitch Ratings said.

The Mortgage Bankers Association is in the midst of reshaping its government affairs duties, and plans to hire a new senior vice president to oversee what it calls "advocacy."

The Federal Reserve should continue its MBS purchase program past the March 31 cutoff date, according to James Bullard, president of the St. Louis Federal Reserve Bank.