Cart

Inside MBS & ABS

July 18, 2008

View Archived Issues

Requiring Originators to Retain Interest in MBS Deals Isn’t Vital to Performance, New Report Concludes

Requiring originators or MBS issuers to have “skin in the game” may not be as significant a factor in determining performance as many observers think. The results of originators retaining a financial interest in deals vary from transaction to transaction, may change over time and “are generally limited,” according to a new report from Moody’s Investors Service. The report comes... Read More

Covered Bonds May Help Restore Liquidity in US Mortgage Market

In an attempt to make covered bonds more mainstream in the US and increase liquidity for insured depository institutions, the Federal Deposit Insurance Corp. this week issued a final policy statement on how it would handle such transactions as receiver for insolvent banks. Taking in account over 130 comment letters, the FDIC agreed to some of the industry’s suggested changes, but stuck to its guns... Read More

Final HOEPA Rule Aimed at Reviving Subprime Market Severely Limits Prepayment Penalties

The Federal Reserve’s finalized rules for subprime lending will alter the MBS landscape, when the market returns. While the rules do not contain assignee liability, subprime MBS investors used to the protection of prepayment penalties will see those perks limited. The Fed’s revision this week of its Home Ownership and Equity Protection Act rule sets new standards for subprime loans, most of which... Read More

FASB Encouraged to Take a Snail’s Approach to Changing FAS 140

Fear over the impact of proposed changes to accounting rules for mortgage and asset securitization continued to intensify this week as Wall Street urged the Financial Accounting Standards Board not to rush development of the new standard. At the request of the Securities and Exchange Commission, FASB is in the final stages of drafting a revised Financial... Read More

Surge in Auto Loan Securitization Leads Second Quarter Rebound in ABS Issuance

Solid gains in all the major ABS food groups pushed asset-backed securitization volume up 71 percent during the second quarter, according to a new ranking and analysis by Inside MBS & ABS. A total of $72.99 billion of non-mortgage ABS were issued during the second quarter, the highest three-month volume since the same period in 2007. After a... [Includes three charts] Read More

SEC Details Proposed Changes in Use of Ratings for MBS, ABS Shelf Registrations

Issuers of MBS and ABS seeking to use S-3 shelf registration that allows for delayed or continuous issuance of new transactions would have to qualify based on factors other than the credit rating of the assets being securitized, under a proposed rule released late last week by the Securities and Exchange Commission. The new proposed rule on S-3 registrations is part of a sweeping SEC overhaul of... Read More

ASF Moves to Revive the Non-Agency MBS Market With Voluntary Increased Disclosure by Issuers

Mortgage investors this week suggested that the only way the market for non-agency MBS will rebound is with a massive increase in disclosure from issuers. And while such disclosures proposed this week by the American Securitization Forum would be voluntary, the group warned that issuers who do not participate could see their pricing affected. Comments on the ASF’s Project on Residential Securitization... Read More

Administration Moves to ‘Harden’ U.S. Support Of Fannie/Freddie MBS: Will It Come with Strings?

The only functioning segment of the mortgage securities market – the agency sector – received a brief scare late last week when investor concerns about Fannie Mae’s and Freddie Mac’s ability to withstand mounting foreclosure losses caused a massive sell-off in the two companies’ stock. Fortunately, the confidence crisis in the two largest players in the U.S. mortgage market never... Read More

Latest Imf News

More Imf News

Featured Data

More Featured Data

Featured Reports

More Latest Reports

Featured Poll

As homeowner equity continues to build, more and more lenders are launching home equity lending products. Are you thinking of joining this market?

View Results