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’A collateral conundrum for Irish banks [updated]
Some more on the funding plights of Irish banks, which’ve hoved into view over those bailout non-talks between Ireland and Europe.
We know that Irish banks increasingly need central bank liquidity in order to survive being shut out of funding markets,
The least ‘advanced’ mortgage servicers
The mortgage servicing biz is not coming out of the foreclosure scandal unscathed.
What was once a fairly steady industry — based on narrow margins but lots of volume — is suddenly having to rethink its business model.
Citi slapped with subprime RMBS lawsuit
No sooner had rumblings over Citigroup’s “toxic mortgage pipeline” began — than the bank becomes the next in line to be embroiled in a mortgage-related lawsuit.
Spotted in Citi’s just-filed third-quarter 10-Q:
Collateralised contagion
Interactive graphics at their best, this.
Network scientist Valedis Krebs has created a visualisation of ownership in Collateralized Debt Obligations (CDOs) — all that securitised cross-ownership.
To make it,
Structured, structured finance
October may be over, but it will go down in covered bond history (ahem) as the month which saw the debut of not one, but two covered bonds backed by RMBS.
That’s a debt security backed by Residential Mortgage-Backed Securities.
MBS trade settlement failures hit record
Something’s afoot in the Mortgage-Backed Securities (MBS) market.
After this week’s drop-off in secondary market trading for private-label residential MBS, comes Friday’s news that MBS trade settlement failures reached a record:
The outing of the Robo-Signer conference attendees
Wednesday morning. New York. The Robo-Signers Conference.
Hosted at the swanky Core Club on on East 55th Street this was not an event for the Robosigners themselves — the foreclosure document-signing recruits who sparked a wave of industry uncertainty.
MBS trading takes a time-out
A datapoint from the world of Mortgage-Backed Securities (MBS) trading.
The debate over whether — and if so, how — mortgage issues in the States will affect the secondary market for private-label residential MBS has raged for some time now.
MERS casts its shadow on commercial mortgages
Barclays Capital analysts have done it.
They’ve linked Mortgage Electronic Registration Systems Inc — currently making headlines in US residential mortgages — to the commercial mortgage market.
And specifically,
Performing PPIFs
The Public-Private Investment Program, or PPIP — do you remember it?
Appropriately, given its somewhat Dickensian name, it was like the orphaned child of banking stabilisation measures. Associated with a difficult early period of the Tim Geithner reign,
That extended España RMBS
Think foreclosure complications are just a US phenomenon? Think again.
From Moody’s Investors Service — a timely report on litigation procedures for Spanish mortgages.
The premise here is interesting.
Turn of the (MBS) trustees
Bank of New York Mellon may have been the other addressee in that Pimco, New York Fed, BlackRock et al letter regarding $47bn in RMBS — but it’s managed to escape much of the limelight shining on co-addressee Bank of America.
Those blemished Countrywide credit loans
So… since FT Alphaville was working on a special RMBS supplement;
We spoke with Scott Simon, head of MBS at Pimco last week — who gave us this quote:
“There’s been an amazing amount of things
A stab at securitisation
Some weekend foreclosure scandal, securitisation-related reading.
It’s based on a 159-page class action lawsuit, filed in Kentucky on behalf of all Kentuckian homeowners, and against MERS and several financials.
Moody’s looks to Finland – to explain Ireland, Spain
Want to know the shape of things to come in Ireland? Spain?
Look no further than … Finland.
That particular Nordic nation experienced an almighty financial boom in the 1980s. In 1990 came the the bust — led by a slowdown in the global economy,
Taxing times for MBS
Back in the 1980s — when Lewis Ranieri was still fighting for the legal status of MBS — something seminal happened for the mortgage securitisation market.
The Tax Reform Act was passed by the US in 1986,
Sacrificing servicers on the altar of Hamp
We like to think of the foreclosure scandal as Hamp on super-steroids, with a hefty dose of litigation and structured finance for added fun.
Recall that the US administration’s mortgage modification program was aimed simply at keeping people in their houses.
The MBS mess from the beginning – the deal docs
Mike Konczal at Rortybomb, has a quick rebuff for anyone who thinks the foreclosure scandal is creating a mountain out of a molehill (of mortgage paperwork).
It’s this pooling and servicing agreement for GSAMP Trust 2006-FM1.
The mother of all (RMBS) tranche warfare
From the foreclosure freeze, to the tranche warfare.
The Wall Street Journal mentioned the issue last week, as does Mike Konzcal over at Rortybomb in his excellent ‘Foreclosure Fraud for Dummies’ piece.
MERS, an acronym of mass foreclosure destruction
Financial ‘innovation’ coming back to haunt the system is something we are familiar with.
But do welcome a new toxic acronym to the stable — MERS — that’s Mortgage Electronic Registration Systems Inc.
Updating the US foreclosure scandal
As the foreclosure scandal in the US continues to expand, it’s becoming more and more clear that it will have ramifications well beyond problems for a few large banks and the so-called robo-signers.
The Washington Post digs a little deeper on Thursday (emphasis ours):
From Robo-Signing to RMBS
Introducing the ‘Robo-Signing’ scandal.
Not to be confused with the flash crash or algorithmic trading, this robotic reproach concerns America’s foreclosure crisis.
It seems some mortgage servicers,
So long SLS, and thanks for all the liquidity
Here’s Paul Fisher waving a curt Bank of England farewell to the Special Liquidity Scheme it started back in 2008.
From a Thursday speech by the Monetary Policy Committee member:
During early 2008,
The BoE’s phantasmic new web idea
Whoops.
This little market notice — from the Bank of England — slipped past us on Monday:
MARKET NOTICE – EXPANDING ELIGIBLE COLLATERAL IN THE DISCOUNT WINDOW FACILITY AND INFORMATION TRANSPARENCY FOR ASSET-BACKED
That’s the long-awaited outcome of the central bank’s consultation into the type of bank collateral it allows banks to use at its discount window facility (DWF).
The plain vanilla mortgage LIVES! It’s just called ‘qualified’
Did any one catch this bit in the latest (and last?) draft of theUS financial reform bill?
From page 189 of Title IX :
‘‘(B) require a securitizer to retain— 16 ‘‘(i) not less than 5 percent of the 17 credit risk for any asset— 18 ‘‘(I) that is not a qualified resi19 dential mortgage that is transferred,
From junk bonds to junk mortgage bonds
If investors really ♥ junk for most of this year, they really really might ♥ mortgages.
It’s a point you might not have realised just by looking at non-agency residential mortgage-backed securities (RMBS) and high-yield bond indices over the past 13 months or so.
Eternal sunshine of the securitisation mind
It’s conference time!
The 2010 Global ABS meet is currently taking place at the Hilton Metropole, just across from the Marks & Spencer on Edgware Road in London. This is rather a fall from grace,
The phantom securities which haunt the BoE, quantified
Some moral hazard maths du jour, courtesy of the Bank of England.
In the depths of the financial crisis, the Old Lady began expanding the bank collateral eligible for use at its various liquidity operations,