Securitization

Fitch Ratings assigned Green Loan Services a CMBS large loan special servicer rating of ‘CLLSS2-’. This is the first assignment of the recently published rating.

Jason Kravitt, senior partner in the securitization practice at Mayer Brown, focused on the implications of last week’s Department of the Treasury announcement of new regulations on securitization. Kravitt spoke on a conference call late last week to discuss the significant components of the new regulations, specifically the rule that requires issuers to hold on to 5% of the loans they securitize. “If this is not handled the right way, this defeats the purpose securitization is supposed to serve which is to allow firms to reuse capital so that they can keep generating new credit,” Kravitt said.

The Federal Open Market Committee reiterated its existing commitment to ongoing temporary programs involving the purchase of agency mortgage-backed securities and debt as well as Treasury securities as it once again left short-term rates unchanged at its most recent meeting.

Standard & Poor's yesterday downgraded bond insurer Ambac Assurance Corp. to 'BBB' from 'A', saying it believes the company is "effectively in runoff." The rating is on negative watch.

Fitch Ratings has withdrawn the short term rating of ‘F1+’ of Eureka Securitisation Plc & Eureka Securitisation's ABCP, the rating agency said in today’s release.

The July 7 Term-Asset Backed Securities Loan Facility (TALF) will be available only for non-mortgage asset-backed securities, and will for the first time include prime-based loans for private student loan ABS, the Federal Reserve Bank of New York said this week.

Mayer Brown is in advanced talks with several firms in London to significantly increase its capital markets and corporate practice groups in the area, according to published reports.

New-home sales edged down 0.6% in May after rising during the previous two months and builders continued to trim their inventories of unsold homes.

For the first time since the week of May 15 the Mortgage Bankers Association Weekly Applications Survey Market Composite Index increased.

A Fitch Solutions/Portsmouth Financial Systems desktop application that offers loan-level analytics for the U.S. structured finance market will start with a focus on subprime, alternative-A and prime credit residential mortgage-backed securities.

Former Citigroup senior executives Antonio Cacorino and Frederick Chapey have launched StormHarbour Partners, an independent global-markets firm focusing on capital markets and fixed-income activities through subsidiaries.

Capital Market Risk Advisors (CMRA) and Risk Fundamentals announced a joint venture combining CMRA’s risk management and risk governance consulting services with Risk Fundamentals’ risk transparency software, CMRA said in its release.

S&P Places LSCM Notes on CreditWatch Negative

The Treeline Cos., an owner and manager of more than 2.5 million square feet of office properties throughout the New York metropolitan region, is launching Treeline Realty Advisors, a real estate consulting and asset management division focused on troubled assets.

Russell Investments and Jadwa Investment have launched a new Shariah compliant offering called the Russel-Jadwa Shariah Index family, according to a release from Russell.

The May remittance reports showed subprime collateral having improved delinquency roll rates, lower cure rates, and slower pre-REO liquidation speeds, according to Barclays Capital.

Existing single-family home sales rose 1.9% in May, marking the third consecutive monthly rise, even though the purchase of foreclosed properties and first-time sales declined.

JPMorgan Chase has named Thanh Roetelle the head of warehouse lending for its bank division, putting him in charge of managing the company's five major warehouse lending clients including Quicken Home Loans, industry officials said.

Diana Mead was promoted to chief operating officer of Allonhill, the mortgage due diligence firm reported today.

Ginnie Mae posted $38.98 billion in total MBS issuance in May.