Securitization

Citigroup Global Market said in a report today that approzimately 48,500 loans with about $16.3 billion in unpaid principal balance in flood affected areas may not have the right insurance coverage, making them vulnerable to losses.

In a short note from this morning, the rating agency said it does not expect major changes in the short term resulting from the election, although it can affect the status of residential mortgage reform and covered bond legislation.

As loan losses mount, the Federal Housing Administration will issue a financial analysis next week setting the stage for what could be its first draw from the U.S. Treasury.

Goldman Sachs is asking the U.S. Supreme Court to overturn a lower-court decision involving RMBS the company said would cost financial firms tens of billions of dollars.

Moody’s Investors Service said Monday that the damages from Hurricane Sandy will only impact bondholders of Combine Re Ltd Series 2012, a catastrophe bond that was underwritten by Swiss Reinsurance Co. in March 2012.

Nearly $700 billion of mortgage servicing rights — or 7.6% of the housing receivables marke — are in some stage of auction or sale.

Although trade group officials and certain lobbyists are hearing reports that the rule might be out before November’s end, others believe mid- to late December is more likely.

More than $1.5 billion in loans resolved pushes the delinquency rate to fall 30 basis points, it's largest drop in 14 months. Trepp is expecting this trend to continue in the upcoming months.

Freddie Mac said today that it expects its fifteenth multifamily CMBS from its K multifamily series of deals to price this week.

The market has been focusing on the U.S. Presidential elections since the results will affect outlooks for different key issues including the fiscal cliff, BofA Merrill analysts said.

MetLife Bank said late Friday it will sell its $70 billion residential servicing portfolio to JPMorgan Chase for an undisclosed sum.

In the wake of Hurricane Sandy, delinquency rates are expected to rise in RMBS deals.

Volume in MBS trading was at less than two-thirds of normal as a result of thinly staffed trading desks and the market shutdown.

According to Barclays, the recent Senior Loan Officer Opinion Survey highlighted the continued strength of consumer lending.

Citgroup Global Markets said that the number of RMBS delinquencies that eventually default resulting from Hurricane Sandy will mostly depend on how much damage will be covered by insurance.

Ally Bank is vowing to carry on in the residential finance sector, albeit in a reduced role.

Redwood Trust, the most active securitizer of Jumbo loans in the nation, earned $40 million in the third quarter – double of what it took in 2Q12 – and unveiled plans to ramp up non-agency loan production over the next 12 months and beyond so it can securitize $300 million or more each month.

The CFPB and FHFA said Thursday they are teaming up to create a first-of-its-kind mega-database of mortgages to track market trends and support policymaking research.

Standard & Poors said that in October the weighted average default risk of the top 70 tenants in U.S. conduit/fusion CMBS transactions was unchanged.

The right price for private capital is a moving target. Much depends on regulations over legal liabilities and risk retention requirements for originators that are still in flux.