Securitization

Barclays Capital analysts expect that publicly placed issuance for 2012 in the European asset-backed market will exceed their original forecast.

Ten industry groups are urging the Consumer Financial Protection Agency to issue a qualified mortgage rule allowing them to adhere to current underwriting standards without fear of litigation.

DBRS said today that rising subprime loan origination volumes and general economic improvement are still creating a positive momentum for the auto sector.

The $65 million Citigroup loan made to Waypoint Real Estate Group for investments in distressed single-family houses converted to rentals, may be a precursor to the much anticipated securitization of these assets.

Bank of America Merrill Lynch analysts' view on most senior FFELP and private student loan ABS remains positive, they said in a Sept. 14 report.

Wells Fargo analysts expect consumer ABS issuance to reach $170 billion in 2012, which is a 60% rise over last year. They also noted a modest shift to longer average lives in new deals.

This week there are two auto deals from Toyota and Enterprise as well as two equipment offerings from CNH and GE Capital.

The Federal Open Market Committee surprised the market in that the announced MBS buying was limited to agency fixed-rate MBS only and not Treasurys, although it will continue Operation Twist through yearend as scheduled.

In the structured finance space, the Sept. 13 Federal Reserve announcement that it is beginning a new quantitative easing program of buying $40 billion in MBS per month is set to have the most impact on levered CMBS pricing levels.

The Federal Housing Administration has opened the bids for its Sept. 12 sale of 5,000 nonperforming formerly insured FHA loans and the results are “very, very positive,” acting commissioner Carol Galante said.

Rep. Scott Garrett, R-N.J., is working a bill that would encourage the re-emergence of a private-label securities market by exempting certain loan pools from risk retention and SEC registration.

In August, roughly $2 billion loans were resolved and taken out from the index versus $1.7 billion of new delinquencies added to the index.

Bluegreen Corp. has completed a timeshare ABS while Westgate Resorts' deal got rated by S&P for a combined $122 million tally of transactions in the sector.

The Consumer Financial Protection Bureau opposes a 20% downpayment on low-risk mortgages. It will not use its special rule-writing powers to undermine the Dodd-Frank Act, director Richard Cordray told lawmakers Thursday.

Survey respondents also expect two important buyers of loans, CLOs and loan mutual funds, to boost their assets in 2013.

General Electric Capital Corp. is planning to issue a securitization under its GE Equipment Midticket LLC, Series 2012-1.

Freddie Mac, after being criticized by the Inspector General’s office of its regulator, has improved its mortgage buyback reviews and could recoup an additional $3.4 billion in damages.

MBS valuations can stay rich and tighten further based on the strong technical backdrop the announcement creates.

Citibank securitization analysts said in a report today that the global slowdown, Europe's debt crisis and the deteriorating U.S. economy have bolstered the ABS market's resolve to remain short and high quality.

The GSEs will continue to “maintain their own securitization operations and continue to issue their own securities,” the Federal Housing Finance Agency Acting Director Edward DeMarco said.