Securitization

A federal judge on July 22 rejected a motion by two former Washington Mutual Bank (WaMu) units to escape a class action lawsuit.

Amherst Securities Group (ASG) analysts reiterated their stance on HAMP 2.0’s implementation. They gave a warning about the potential abuse among borrowers with rental properties.

The Consumer Financial Protection Bureau (CFPB) is working on a qualified mortgage rule that will allow the mortgage market to meet the needs of borrowers “throughout the credit cycle,” agency chief Richard Cordray said in new testimony Tuesday morning.

The CRE Finance Council Europe (CREFC-Europe) launched the Market Principles for Issuing European CMBS 2.0, a consultative document that outlines principles for new CMBS issuance.

It would appear that the HARP 2.0 program is hot.

At least two bidders remain for the $30.8 billion of Freddie Mac mortgage servicing rights once owned by the now defunct Taylor, Bean & Whitaker (TBW), Ocala, Fla., according to investment bankers familiar with the sale process.

Wells Fargo analysts called the consumer ABS market a “safe haven” for fixed-income buyers with spreads in 2012 reflecting this trend.

Different Walnut Place entities that formed part of the Article 77 proceedings to ratify the Countrywide settlement have withdrawn as intervenors, Barclays Capital analysts noted in a report released this afternoon. Analysts cited a letter filed today with The New York State Supreme Court.

Global CMBS issuance is at $26.2 billion year-to-date, according to Dealogic numbers released late last week.

Micro subprime retail auto ABS deals offer investors a large pickup in spread when compared to the broader subprime auto ABS transactions, according to a Barclays Capital securitized products research report.

Franklin Templeton Investments launched a new global bond fund that will focus on global debt, including emerging markets, a firm spokesman confirmed.

In its latest Securitized Products Weekly, Nomura Securities cited Sallie Mae’s announcement from last week that stated $4.5 billion of FFELP loans, which comprise about 3% of its portfolio, was expected to consolidate under the Special Direct Consolidation Loan Initiative.

Regulation and Reform

The government-sponsored enterprises have implemented consistent guidelines for short sale procedures and those efforts are expected to expand to include additional loss mitigation efforts.

Correspondent One, which aims to be a major buyer of closed mortgages from nonbank lenders and others, has launched and is now in the process of closing some of its first transactions, according to vendors and consultants that work with the firm.

Today Freddie Mac said it is offering its tenth offering of multifamily MBS called structured passthrough certificates or K certificates.

First Horizon National in Memphis said Friday that it lost close to $125 million in the second quarter after it bought back scores of soured mortgage loans from Fannie Mae and Freddie Mac.

After the Treasury Department rolled out its Home Affordable Modification Principal (HAMP) reduction program in October 2010, it didn’t take long to figure out the incentive payments to investors were not high enough to encourage a high level of participation.

Mortgages outperformed over the week based on expectations that the Federal Reserve will initiate QE3 at its September meeting and a drought in supply.

The September expiration date for the Small Business Administration's (SBA) secondary market program for the first lien position means that first mortgages will no longer be eligible for a government guarantee.