Securitization

Stability was the word for the third straight month for U.S. prime auto ABS 60+ days delinquencies. Meanwhile, subprime auto ABS delinquencies hit an 11-year high, which possibly paves the way for a notably weaker fourth quarter, according to Fitch Ratings.

Remittance reports for the October distribution date, which represents the September collection period, showed mixed collateral performance.

The Federal Housing Finance Agency (FHFA) integrated three agencies under its umbrella.

HOPE NOW announced today that nearly 2.5 million homeowners have avoided foreclosure and been able to stay in their homes since July 2007 because of its efforts.

Sales of new single-family homes rose by 2.7% in September from the previous month to a seasonally adjusted annual rate of 464,000 units but the median price of a house fell to the lowest level in four years — $218,400, according to new government figures.

The Federal Deposit Insurance Corp. is in the process of mailing 15,000 loan modification proposals to mortgage customers of IndyMac Bank of California.

PNC Financial Services, which has limited participation in the mortgage business, may be wading back into the game with its purchase of National City Corp.

The Mortgage Bankers Association (MBA) appointed Catherine Cruz Wojtasik as associate vice president of legislative affairs. In her new role, Cruz Wojtasik will join MBA's lobbying team on Capitol Hill working with Members of the House of Representatives and Senate with an added focus on commercial issues important to MBA's members.

U.K charities have called on the Treasury to put pressure on Northern Rock to change its approach to property repossession. The charities said that the nationalized bank has been aggressive toward repossessions when borrowers fall behind with their mortgage repayments, because of its eagerness to repay the government.

It's going to take some effort for Mexican nonbank company Metrofinanciera to win back the confidence of the market.

Mortgages saw improved funding and strengthening dollar rolls at the beginning of last week. This was because the world government programs were starting to get a foothold. U.S. one-month Libor dropped nearly 90 basis points over the previous week, and mortgages rallied sharply on Monday. Real money, hedge funds and servicers actively bought down-in-coupon.

The European securitization market could see some stabilization in pricing as the European Commission (EC) moves to adopt amendments to mark-to-market regulation.

The face of European securitization changes on an almost daily basis. Solutions drafted to solve the lack of market liquidity have been done on a country-by-country basis.

Although covered bonds are seen as a safer funding alternative for mortgages, there are still some hindrances to the growth of the sector in the U.S, according to participants at last week's Information Management Network ABS East conference in Hollywood, Florida.

The Department of Education (DOE) on Oct. 10 made amendments to its Loan Purchase Commitment Program and its Loan Participation Program. Under these programs, the DOE could purchase eligible FFELP loans that were made for the 2008-2009 academic year, or those originated after May 1.

Though paltry in comparison to previous quarters, credit cards continued to dominate new issuance in the consumer ABS market, as it has for the past year.

Government intervention and a move toward safer structures and collateral are making the current ABCP market a better place to be for issuers and investors alike.

The Troubled Asset Relief Program (TARP), which forms part of the Economic Stabilization Act of 2008, was a major focus at the Information Management Network's 14th Annual ABS East conference held in Hollywood, Florida, last week.

At the Information Management Network's 14th annual ABS East conference in Hollywood, Florida last week, it was easy to see that times are tough. However, it is still a pretty good time to be a credit card issuer, speakers said.

The Treasury clearly has a lot riding on the success of the TARP program, as it may be its last shot at restoring some semblance of normality to the markets.