Securitization

After AmeriCredit Corp. came to market with two deals almost back to back, Fitch Ratings last week downgraded the long-term Issuer Default Rating (IDR) of AmeriCredit Corp. (ACF) to 'B' from 'B+'. All ratings remain on Rating Watch Negative. Approximately $750 million of debt is affected by this action.

Federal, state, and industry efforts to prevent foreclosures are swelling the backlog of problem loans.

Fitch Ratings launched a CMBS performance analytics service for EMEA today. The enhanced surveillance pages on the Fitch research Web site now provide advanced EMEA CMBS performance metrics and analysis in a standardized form.

Conventional speeds were predicted to decline about 20% on average from October with GNMAs predicted to be down half as much.

The percentage of homeowners late on their mortgage — or in foreclosure — soared to a new high in the third quarter: 10.27%, according to new figures released today.

Manager Activity: AutosFull Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market

A recent Mortgage Bankers Association (MBA) study showed that the government-insured share of mortgage applications continues to increase compared with their conventional counterparts.

Over Thanksgiving break, Mexico's Metrofinanciera dropped a huge turkey on the laps of its bond investors, roughly Ps4.19 billion ($308.3 million) worth. That's how much the company revealed it owed the financial trusts of its securitized debt as of the end of the third quarter.

Nearly four years after turning in its thrift charter, Ocwen Financial Corp. has reconsidered the merits of federal regulation and has applied to convert to a bank holding company and buy a tiny Texas bank.

The home stretch to 2009 has begun, and ABS market participants appear to have kicked up their heels in hopes that the new year will bring a rebirth in the securitization space.

With the slew of Federal initiatives aimed at restoring stability in the capital markets, attention has finally been paid to the struggling mortgage industry - which might now be gaining some traction in the loan modification space, market participants said.

In the time since the crisis unfolded, the U.K. government has been under criticism for not doing enough to stimulate a mortgage market revival.

ABS market participants across the globe gathered together on Wednesday for a joint meeting of industry organizations including the American Securitization Forum (ASF), the Securities Industry and Financial Markets Association (SIFMA), the Australian Securitisation Forum and the European Securitisation Forum. The hot topic on the agenda was the pressing need to restore confidence in securitization.

Freddie Mac reported 30-year fixed mortgage rates averaged 5.53%, down 44 basis points from last week's level.

Republicans signaled Wednesday they may try to block the release of the remaining $350 billion of funds for the Troubled Asset Relief Program (TARP), criticizing Treasury Secretary Henry Paulson's failure to establish clear goals and accountability for the funds spent to date.

Fitch Ratings said it will now seek and evaluate third-party loan-level reviews on all residential mortgage pools it is asked to rate in order to better identify poor underwriting practices.

Mortgage Network, Danvers, Mass., has temporarily suspended its wholesale and correspondent originations in order to cope with a federal policy-driven spike in refinance applications that an executive at the company said has strained market-wide warehouse line capacity in the channels.

In response to additional investor feedback, Moody's Investors Service is modifying the two supplemental measures to its structured finance ratings that it introduced earlier this year.

With no end in sight for the financial crisis, the Federal Reserve said Tuesday it will extend three of its liquidity programs through April 30.

Nearly four years after turning in its thrift charter, Ocwen Financial Corp. has reconsidered the merits of federal regulation and has applied to convert to a bank holding company and buy a tiny Texas bank.