Securitization

Fitch Ratings said that 15% of mortgage loans in U.K. prime RMBS master trust programs have negative equity. The agency expects that number to increase to 34% if house prices fall in line with Fitch's expectations of a 30% house price decline peak to trough. This would mean a further 14% drop from today's values.

Although Fitch Ratings downgrades for U.K. CMBS are expected to stabilize, the rest of Europe might not have as much luck, according to a Barclays Capital report.

Lender Processing Services (LPS) launched its new proprietary Home Price Index (HPI).

Beacon Capital Markets, which operates an electronic-trading MBS marketplace, plans to add in non-agency MBS, ABS and CMBS starting July 10.

MBA Lowers its Forecast for Mortgage Originations

Integrated Mortgage Solutions, a collateral protection resource for the mortgage servicing industry, has named Gerald (Jerry) Aust as senior vice president of sales and client relations.

Over-the-counter derivatives that are securities-based should be regulated under federal securities laws by the Securities and Exchange Commission, SEC chairman Mary Schapiro told a Senate panel yesterday.

Statement of Financial Accounting Standard (SFAS) 166 and SFAS 167 — which relate to the reconsolidation of off-balance sheet securitizations — are not expected to result in negative rating actions, according to Fitch Ratings.

Non-agency re-remic activity has increased since the beginning of the year, according to a Barclays Capital research report.

After Citibank priced two credit card offerings on Friday, Chase is following suit by coming to market with a card deal.

Ambac Financial Group announced Friday it is delaying its planned launch of muni-only bond insurer Everspan Financial Guaranty Corp.

The 105% loan-to-value ratio limit on Fannie Mae and Freddie Mac's program to refinance underwater borrowers could be raised to increase participation, according to the GSEs' regulator.

The United Kingdom's Council of Mortgage Lenders has reduced its forecast for foreclosures this year to 65,000 from 75,000.

The Senate has confirmed Herbert Allison by voice vote to be a Treasury assistant secretary and run the Troubled Asset Relief Program, which is providing loans and capital to stabilize banks, insurance companies and automakers.

Several collateralized loan obligations, totaling approximately $1 billion, have been sold to buyers in the Europe and in the U.S., according to Dow Jones.

Credit card delinquencies declined in May for the second month in a row to 5.7% on the Bankcard ABS index, according to JPMorgan Securities’ June 15 Credit Card ABS Monthly Update.

Federal Housing Finance Agency Director James Lockhart was quoted saying that the GSEs are studying plans to raise the LTV ceiling under the Obama refinance plan to 125% from 105%. However, JPMorgan Securities analysts said that raising the LTV will only marginally affect the number of people opting to refinance.

Skip Wells has joined the Global Investment Management team at GE Capital Real Estate as a fund manager for senior secured debt investments, the firm has announced.

The Group of North American Insurance Enterprises (GNAIE) has joined a new coalition of trade associations that will engage the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) to reform accounting standards as a way to address the financial crisis.

Two deals from Citibank Credit Card Issuance Trust priced on Friday.