Securitization

Changes made late last year to the Obama administration's flagship mortgage refinance program, Home Affordable Refinance Program (HARP), have boosted profits at the nation's largest banks at the expense of homeowners and U.S. taxpayers, according to mortgage experts testifying at a Senate hearing the week of April 23.

The increasing vehicle sales and used car prices as well as the tight spreads are aiding the growth in subprime auto ABS, according to Standard & Poor's analysts in a e-mailed note released this morning.

Lenders are no more willing now to make a home loan backed by Fannie Mae or Freddie Mac than they were six years ago, according to a Federal Reserve Board survey released Monday.

In the last four weeks, subprime auto and FFELP SLABS have tightened five basis points to 10 basis points, which is the most of any asset class in that period, Wells Fargo analysts said in a report released this afternoon.

Industry efforts to pass legislation that would exclude originator compensation from the statutory points and fees test in the qualified mortgage rule are off to a slow start on Capitol Hill.

Ally Financial, in a new public filing, finally admitted that it is weighing bankruptcy protection for its struggling residential mortgage division, which is facing potential additional losses of up to $4 billion.

Recently National Australia Bank (NAB) had priced a $1 billion RMBS for Member Equity Bank that was sold to global investors, which include money market investors, and domestic buysiders.

Freddie Mac has a new offering of structured passthrough certificates or K certificates. The deal comprises roughly $1 billion in multifamily MBS, which are set to price this week.

Western Asset Mortgage Capital Corp. today announced its plans for an IPO of 8,000,000 shares of its common stock.

The House approved a student loan bill Friday on a partisan basis that immediately invoked a veto threat by the White House.

National Credit Union Administration (NCUA)is preparing to ease the reins on the use of financial derivatives and allow more credit unions to deal in a variety of instruments that would help them hedge interest rate risk, including interest rate swaps, caps, floors, options and collars.

Housing industry groups are pressing the Consumer Financial Protection Bureau (CFPB) to craft a qualified mortgage rule that shields lenders from meritless litigation and ensures access to affordable and sustainable mortgages.

The Federal Housing Finance Agency (FHFA) has indefinitely delayed its timeline for a highly anticipated decision on whether to allow principal reductions on loans owned by Fannie Mae and Freddie Mac, an agency spokeswoman said Friday.

Manager Activity: Autos Book Runner Amount (US$ Mil) Rank Mkt.

On April 20 a judge decided that a case seeking to reverse bond insurer MBIA's 2009 transformation into two companies will go to trial on May 14.

The recent CMBS backed by nonperforming commercial real estate (CRE) loans from Rialto Capital Advisors is the beginning of a trend, Fitch Ratings said in a recent report. It is the first CMBS to be backed by nonperforming loans (NPLs) in years.

The events that affected trading this week revolved primarily around $99 billion in Treasury supply. The Federal Open Market Committee (FOMC) held a two-day meeting with the statement, summary of economic projections and a press conference taking up most of Wednesday afternoon.

At least one dozen — and perhaps more — of Ally Financial’s nonbank warehouse lending customers are searching for back-up lines of credit, fearing the government-owned lender may soon cut back, according to interviews conducted by National Mortgage News this week.

A new €402.4 million ($532 million) Finnish auto loan securitization is marketing this week from SCF Rahoituspalvelut Limited.