Securitization

The Federal Deposit Insurance Corp. (FDIC) on Thursday released for comment its plan to auction and sell toxic assets, asking questions on everything from which assets should be eligible to how fees for government-guaranteed debt should be assessed.

Tom Donatacci, who recently left Residential Capital Corp., has joined The Clayton Group, a loan advisory firm based in Shelton, Conn.

Canary Wharf Finance II, one of the highest profile CMBS deals in Europe reported results yesterday and showed that debt-service-coverage ratio (DSCR) went up to 1.30 from 1.18, mostly due to an increase in rents.

Lending through the Federal Reserve Board's discount window grew less than 1% during the past week, to $136.2 billion.

Industry veteran Tom Donatacci, senior vice president of business development and subservicing for Residential Capital Corp. (ResCap), Horsham, Pa., has left the company.

Freddie Mac's reverse REMIC Giant PC securities program, which aims to improve liquidity for remaining real estate mortgage investment conduit securities, has gotten underway.

Credit card issuers are taking unusual steps to protect their securitization vehicles as surging unemployment continues to hurt credit performance and a government program has reopened the ABS market to new issuance.

Freddie Mac reported in its weekly survey that the 30-year fixed mortgage rate averaged 4.85%, down 13 basis points from last week.

The Norwegian finance ministry announced guidelines for the government bond fund, the launch of which, together with a government finance fund, was announced on Feb. 8.

Moody's Investors Service on Wednesday cut Wells Fargo's senior debt rating to 'A1' from 'Aa3', its senior subordinated debt rating to 'A2' from 'A1', and the banking giant's junior subordinated debt rating to 'A3' from 'A1'.

The Mortgage Bankers Association (MBA) has drafted and sent to Washington officials a regulatory reform proposal suggesting how a new federal mortgage regulatory agency the group has been calling for might set lending and servicing rules for the entire mortgage industry, regardless of charter or license.

The Office of Management and Budget (OMB) is considering changes to the estimates the Federal Housing Administration (FHA) is using for house values over the next several years, which could lead to a possible increase in mortgage insurance premiums FHA charges on single-family loans.

New homes sales jumped 4.7% in February from January and it could be a sign that the housing market is finally bottoming out.

March remittance reports, reflecting the February collection period, showed monthly aggregate 60+ day delinquencies rising 64 basis points, 77 basis points, 65 basis points, and 181 basis points, according to a report from Barclays Capital.

Freddie Mac purchased $40 billion of mortgages in February, an 84% increase from the previous month as declining interest rates led to increased business for the government-controlled giant. However, compared to the same month a year ago, purchases fell 16%.

CNH Capital America priced a $528 million equipment lease deal, CNH Equipment Trust 2009-A. The deal was led by Barclays Capital and RBS Securities.

The recent performance of prime jumbo RMBS from 2005-2007 suggests average losses on the securities might be about three or more times what was previously expected, but there appears to be some hope government initiatives could still make a difference, according to Fitch Ratings.

Philippine government agency National Home Mortgage Finance Corp. (NHMFC) and Standard Chartered Bank priced NHMFC’s first securitization issue.

The Treasury Department and Federal Deposit Insurance Corp. (FDIC)should have the power to decide how to resolve systemically important financial companies, the Treasury said Wednesday.

The Committee of European Securities Regulators (CESR) said that it has encountered varying interpretations of whether structured products should be classified as complex or non-complex in the context of MiFID, depending on the structure of the investment.