Securitization

Some factors started to challenge the strength of MBS' QE3 over the week including better-than-expected economic data and some items in the January Federal Open Market Committee (FOMC) meeting minutes.

Freddie Mac is rumored to have a term sheet circulating the Street outlining its own REO-to-rent initiative, according to a Reuters report.

Rate investors are likely going to get a much smaller piece of the triple-A pie for covered bond investments.

Residential Credit Solutions (RCS) has been approved by Ginnie Mae as an issuer and servicer for the GNMA I and II single-family MBS programs.

Aurora Loan Services (ALS), Denver, recently halted residential production as the company continues to weigh bids on its servicing platform, according to a former ALS official and industry consultants.

Fannie Mae's second multifamily DUS REMIC of the year drew several new investors that one of its executives said were attracted by the deal's relatively strong debt-service coverage ratio, LTV and diversified collateral pool.

Year-to-date 2012 ABS transaction volume has hit the largest year-to-date figures since 2008 with $32 billion representing 37 deals, according to numbers Dealogic released today.

Capital One Financial Corp. agreed as part of its purchase of ING Direct USA to originate loans insured by the Federal Housing Administration (FHA) to borrowers with low credit scores. But five months after giving verbal assurances to the Federal Reserve and consumer groups that it would accept FHA applications with minimum FICO scores of 580, Capital One still is not originating such loans.

A new report that found systemic flaws in California's foreclosure process could be fodder for securities investors to make claims against banks and mortgage servicers, its author says.

Earlier this week, it looked like Congress might again turn to Fannie Mae and Freddie Mac in order to pay for an extension of payroll tax cuts, extended unemployment insurance benefits, and higher Medicare reimbursement rates.

Standard & Poor's said this morning that a significant portion of FFELP SLABS ‘AAA’ ratings have been lowered to ‘AA+’ because of the U.S. sovereign downgrade.

The delinquency rate on all outstanding residential mortgages fell to a three-year low in the fourth quarter with most loan types improving except for one product: Federal Housing Administration (FHA) loans.

Fannie Mae is considering the head of a banking industry trade group and its own general counsel as possible replacements for departing CEO Michael Williams, according to published reports.

A proposal to hike guarantee fees on Fannie Mae and Freddie Mac for the second time in two months was floated Wednesday night during negotiations over a $150 billion bill that would extend the payroll tax deduction and unemployment benefits.

The fees that special servicers charge borrowers seeking loan modifications may present risk to bondholders, borrowers and the recovering CMBS market, said Fitch Ratings in a report today.

Moody's Investors Service today placed on review for downgrade the ratings of various covered bonds issued by Austrian, Danish, Dutch, Finnish, French and German banks.

The government-owned Ally Financial has agreed to sell $1 billion worth of senior notes to a group of underwriters including Barclays Capital, Citigroup, Goldman Sachs and Morgan Stanley.

For the third straight week, 30-year fixed mortgage rates were unchanged at its record low of 3.87% said Freddie Mac in its weekly survey.

Fitch Ratings released a report yesterday about assessing the risk of container ABS, which is a cyclical asset class.