Non-Mortgage ABS

Browse articles from all of our Newsletters related to Non-Mortgage ABS.

December 19, 2014 - Inside MBS & ABS

Global Coalition of Securities Regulators Proposes Standards for Simple, Transparent Securities

A coalition of global securities-market regulators proposed criteria late last week to assist the financial industry’s development of “simple, transparent and comparable” securitization structures. The proposed criteria from the Basel Committee on Banking Supervision and the International Organization of Securities Commissions would apply to many types of MBS and ABS. The extent of involvement by the Securities and Exchange Commission regarding the proposed criteria is unclear. The SEC declined to comment on the proposal and the Bank for International Settlements wouldn’t reveal the members of the taskforce that worked to develop it. However, the SEC is a member of IOSCO and the agency noted that standards issued by IOSCO become the benchmark against which an IOSCO member’s regulatory practices are assessed. The BCBS and IOSCO said...


December 19, 2014 - Inside MBS & ABS

Most Consumer ABS Asset Classes to Hold Up Well In 2015, With Subprime Auto a Question Mark

Wall Street analysts are generally projecting a year of stability for most asset classes in the consumer ABS space for 2015, despite a few more losses and an anticipated increase in interest rates. The one exception might be subprime auto. Analysts at Standard & Poor’s Ratings Services cited a favorable overall environment characterized by a strengthening economy, healthy consumer credit fundamentals, and robust structural protections in ABS transactions. “We expect...


December 12, 2014 - Inside MBS & ABS

Secondary Market Reps Discuss Reg AB II Concerns With SEC Officials, Work Projects Moving Forward

Structured Finance Industry Group staff and some investor members met recently with the Securities and Exchange Commission’s Office of Structured Finance to talk about the initial reaction that investors had to the final Regulation AB II rule. Among topics addressed were market trends, operational aspects and scope of applicability of the final rule, according to an update SFIG provided its members recently. Meanwhile, the SFIG is...


November 26, 2014 - Inside MBS & ABS

Auto Loan ABS Issuers Will Likely be Subject to New Risk-Retention Requirements, Moody’s Says

The odds are stacked against auto loan ABS issuers being able to significantly lower the amount of credit risk they have to retain in securitizations under the recently adopted risk-retention rule. That’s mostly because of the strict underwriting criteria for underlying loans to qualify for the exemption from the requirement, according to a new ABS research report from Moody’s Investors Service. “Under the final risk-retention rule of the Dodd-Frank Act, auto loan ABS issuers can reduce the financial interest they must retain in their transactions through a qualifying automobile loan (QAL) exemption,” explained report authors Jeffrey Hibbs, assistant vice president, and Henry Chen, an associate analyst. Issuers can put...[Includes one data chart]


November 26, 2014 - Inside MBS & ABS

Bank Holdings of Non-Mortgage ABS Spike Higher In 3Q14 as TD Bank Makes Big Buy in Card ABS

Bank and thrift holdings of non-mortgage ABS hit a record $184.16 billion at the end of September, according to a new Inside MBS & ABS ranking and analysis. That represented a significant 7.6 percent increase in bank ABS investment in just one quarter. But the sharp increase in industry holdings was fueled by a massive acquisition of credit card ABS by TD Bank, the U.S. operation of the Canadian-based Toronto-Dominion Bank. TD Bank reported...[Includes one data chart]


November 21, 2014 - Inside MBS & ABS

SG Americas’ Non-Agency MBS Trader Fired, Sanctioned by FINRA For Pre-Arranged Trading

The Financial Industry Regulatory Authority revealed recently that a non-agency MBS trader at SG Americas Securities was fired by the firm and sanctioned by FINRA for pre-arranged trading. The self-regulatory organization said that on multiple occasions from 2001 through 2013, Yimin Ge entered into an agreement with counterparties at other institutions to engage in pre-arranged trading. FINRA said such deals violate the Securities Exchange Act as well as FINRA’s rules. The pre-arranged trades involved...


November 14, 2014 - Inside MBS & ABS

SEC Rule Ineffective Against Rating Shopping, CRAs Standing Firm on Rating Methodologies

Shopping for credit ratings is alive and well despite the laws and regulations that have been put in place to curb the practice, but so far credit rating agencies have not lowered their standards, according to Morningstar Credit Ratings. “Arrangers and issuers of structured debt continue to tightly control the selection of credit rating agencies,” Morningstar said in a recent analysis. But information quality and transparency fall short of investor expectations, and the general interests of the key stakeholders remain somewhat misaligned, the rating service said. Arrangers and issuers of residential MBS, non-mortgage ABS and commercial MBS continue...


November 7, 2014 - Inside MBS & ABS

Ally Financial Facing Subpoenas From the SEC, Justice Department Over MBS, Subprime Auto ABS

Ally Financial recently received subpoenas and document requests from the Securities and Exchange Commission and the Department of Justice over a broad array of lending and securitization activities, the company revealed in a recent Form 10-Q disclosure filed with the SEC. “The subpoenas and document requests from the SEC include information covering a wide range of mortgage-related matters, and the subpoenas received from the DOJ include a broad request for documentation and other information in connection with its investigations of potential fraud and other potential legal violations related to MBS, as well as the origination and/or underwriting of mortgage loans,” the company said. In addition, Ally recently received...


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What will Fannie Mae’s and Freddie Mac’s new 97 LTV programs mean for your business?

It will give our business a big boost as there is a lot of pent up demand for the product.
It will have only a minor impact on our overall business as we already are doing high LTV business through FHA and some of our high LTV FHA business is likely to shift to Fannie and Freddie.
It won’t have any impact on our business as we plan to steer clear of all high LTV business – particularly in the GSE market.

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