Non-Mortgage ABS

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

September 12, 2014 - Inside MBS & ABS

Bank ABS Holdings Decline Again in 2Q14 Despite Gains in Certain Asset Classes

Commercial banks and thrifts reported a modest decline in their non-mortgage ABS investments during the second quarter of 2014, although several key sectors showed growth, according to a new analysis and ranking by Inside MBS & ABS. Bank call reports show that the industry held $171.2 billion of non-mortgage ABS in portfolio as of the end of June. That was down 0.8 percent from March, marking the second straight quarterly decline after bank ABS holdings hit a record $173.8 billion at the end of 2013. Bank holdings of auto loan ABS actually increased...[Includes one data chart]


September 12, 2014 - Inside MBS & ABS

Reg AB II Likely Brings Benefits, Higher Costs for Market Participants in Auto Loan/Lease ABS Sector

The recent adoption by the Securities and Exchange Commission of its Regulation AB II disclosure rule is expected to be a “credit positive” for the auto loan and lease ABS sector, but it probably will also raise costs for market participants and, ultimately, consumers, according to an industry consensus of the new rule. The new regulatory regime mandates standardized loan-level disclosures for ABS backed by auto loans and leases, as well as other classes, as reported previously. The loan-level data have to be provided on the SEC’s free online database known as the EDGAR system. Although specific data requirements vary by asset class, the new asset-level disclosures generally will include...


September 5, 2014 - Inside MBS & ABS

Credit Unions Say Prohibition on Purchased Loans Renders NCUA Securitization Proposal Inadequate

A proposal from the National Credit Union Administration to permit covered credit unions to securitize loans they have originated – but not purchased – is widely seen as insufficient by the credit union industry because of that limitation. That’s likely to prompt the regulator to favorably revise the proposal in the coming months, industry analysts say. Back in June, the NCUA issued a proposal to authorize loan securitizations by credit unions, but only for loans originated, not purchased. It also proposed permitting the creation of special purpose vehicles (SPV) to hold the assets collateralizing the securities. Additionally, the proposal lists a number of minimum requirements and limitations on residuals and retained interests. The Credit Union National Association, in its comment letter to the agency, indicated...


September 5, 2014 - Inside MBS & ABS

SEC’s New Disclosure Rule Seen as Costly for Issuers, But Enticing Alternative May Be Unregistered Securities

Issuers of non-agency MBS and commercial MBS, among other structured finance asset classes, are set to face increased costs to comply with a rule from the Securities and Exchange Commission that increases disclosure requirements. But deals that are not issued publicly would avoid the increased costs. Last week, the SEC unanimously adopted a wide-ranging final rule known as Reg AB2, which was first proposed in 2010. By the beginning of 2017, newly issued, publicly registered non-agency MBS will have to include 270 loan-level data points disclosed via the SEC’s Electronic Data Gathering, Analysis, and Retrieval system, known as EDGAR. The required disclosures include...


August 15, 2014 - Inside MBS & ABS

DOJ Subpoenas Top Subprime Auto ABS Issuers GM Financial, Santander Consumer; Who’s Next?

The Department of Justice recently subpoenaed GM Financial and Santander Consumer USA, two of the largest subprime auto ABS issuers in the U.S., over concerns about their subprime auto lending and securitization operations, the two companies recently revealed. The developments suggest that such regulatory scrutiny of the sector in the wake of the financial crisis is intensifying, market participants and policy analysts say. Whether that will pose a substantial risk to other lenders remains to be seen. GM Financial announced...


August 15, 2014 - Inside MBS & ABS

Investors Want Overhaul of Non-Agency MBS Market, Issuers Willing to Make Some Changes

Potential investors in non-agency MBS are calling for significant changes to the market before they’re willing to resume investing in new non-agency MBS. Non-agency MBS issuers indicate that they are willing to make some changes to attract investors, while other adjustments will require action by federal regulators or Congress. In June, the Treasury Department requested comments on how to increase non-agency activity and decrease the agency MBS share of mortgage financing. The comment period closed late last week, with about 25 industry participants submitting feedback. John Gidman, president of the Association of Institutional Investors, said...


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