Securitization

Federal regulators are targeting another financial firm in connection with its mortgage activities before the housing crisis.

Two Democratic senators are urging federal regulators to reconsider a proposal that would require certain MBS issuers to maintain a reserve account during the life of a private mortgage securitization.

Both upper and lower coupons had their days in the sun this week. Over Monday and Tuesday it was lower coupons that outperformed; over Wednesday and Thursday it was up in coupon that led, and on Friday into mid-day the entire stack was doing well.

Foreign covered bonds that target U.S. investors are increasingly coming to market. The latest deal from NordLB will access U.S. investors via the 144A market but issuers have recently explored other options.

Portuguese household incomes would feel the strain of a proposed hike in income tax, which would in turn have a knock-on effect on arrears and default levels in the RMBS transactions, according to an Oct. 5, Fitch Ratings report .

Prepayment speeds slowed less than expected in September . For example, 30-year FNMAs and GNMAs were projected to decline 11-12% with a four day lower day count a major factor; however, speeds slowed just 9% on FNMAs and 6% on GNMAs.

The Federal Housing Finance Agency (FHFA) is seeking public input on its white paper regarding a proposed framework for a common securitization platform and a model Pooling and Servicing Agreement.

Multifamily mortgage origination volume increased 60% in 2011 over 2010, with $110 billion in loans produced, according to the Mortgage Bankers Association.

Credit card delinquencies fell to 2.93% in the second quarter, the lowest level since 2001, according to the American Bankers Association.

Ally Bank is marketing a $680mln auto dealer floorplan securitization from its master trust.

Freddie Mac reported 30-year fixed mortgage rates fell four basis points to a new record low of 3.36% with an average 0.6 point in the week ending October 4.

The State Board of Regents of the State of Utah will issue a $518.7 million, taxable student loan-backed securitization.

The merger between T-Mobile with MetroPCS Communications is a modest credit positive for collateralized loan obligations, In terms of CLO exposure, S&P reported that MetroPCS is in 331 deals and is the 26th ranked obligor.

Republican presidential candidate Mitt Romney sharply criticized President Barrack Obama’s failure to finalize a “qualified mortgage” rule, which has stifled the housing market.

The Valuation of Securities Task Force, which is a part of NAIC assigned to make recommendations that regulate investment risk, has proposed that the economic scenarios used in the 2012 yearend modelling process for CMBS and RMBS should stay similar to 2011.

One other ingredient critical to Nationstar's meteoric rise is a deal it struck with Fannie Mae at the height of the mortgage servicing crisis.

Brean Capital has continued its expansion into fixed-income products by hiring Scott Buchta as head of fixed-income strategy.

The market for U.S. credit card ABS hit two milestones during September, both encouraging signs for the asset class.

This morning the Mortgage Bankers Association reported a 19.6% surge in the Refinance Index to 5888 in the week ending Sept. 28, its highest level since April 2009.