The subprime crisis of 2008 may be over but court cases tied to MBS underwriting misdeeds continue to linger. The latest action pits the FHFA against Wells Fargo for one of its acquisitions: Wachovia.
In the MBS Grapevine this week: The lowest rates ever (maybe) and concerns about future GSE earnings from regulator Mark Calabria. Also, Ginnie Mae seeks committed capital.
The regulator has overturned disciplinary sanctions levied by the Public Com-pany Accounting Oversight Board against an auditor of Thornburg Mortgage, now defunct.
ARRC publishes details on how MBS and ABS linked to LIBOR can transition to a different reference rate. The fallback language applies to newly-issued deals.
Investors and issuers are divided on the usefulness of disclosure requirements for MBS and ABS. While investors said disclosures encourage them to buy securities, issuers cited them as a burden.
Morningstar plans to buy fellow rating agency DBRS for $669 million. Currently, there are 10 nationally recognized statistical rating organizations, and speculation is the space could be ripe for consolidation.
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