RMBS
Residential mortgage-backed securities, or RMBS, are bonds or notes created by securitisation that are backed by residential mortgages or residential real estate loans. RMBS originators are typically financial institutions that originate residential real estate or residential mortgage loans, including banks, building societies/savings & loans and mortgage finance companies. However, issuers could also include government-guaranteed securities issued following bank bailouts, such as TARP or TALF, and the Government Sponsored Enterprises Fannie Mae and Freddie Mac. To create residential mortgage-backed securities, or RMBS, institutions sell pools of their loans to a special-purpose vehicle, or SPV, which then sells the loans to a trust. The trust then repackages the loans as interest-bearing securities and issues them. This true sale of the loans to the SPV ensures that the RMBS is treated as bankruptcy-remote from the originator. Many different types of assets back RMBS, including prime, non-conforming, sub-prime, Alt-A (or Alternative-A), buy-to-let and single-family rental (SFR) mortgages. The financial crisis caused residential mortgage valuations to plummet, leading to severe losses/defaults in many RMBS transactions (and ABS CDOs), as well as efforts to begin modifying loan documentation and indeed the creation of many credit/dislocation/distressed opportunity/recovery funds to take advantage of opportunities in the RMBS sector. Post-crisis, the Government Sponsored Enterprises Fannie Mae and Freddie Mac have developed a credit risk transfer market, comprising synthetic RMBS structures (whereby the risk is transferred via CDS tranches).
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Robo-advisors could boost RMBS quality
Robo-advisors could improve consumer loan and mortgage affordability and strengthen pool quality in...
News 19 July 2017 -
'Brighter year' for securitisation recruitment
The structured finance industry has seen one of its best years in terms of hiring since the financia...
News Analysis 19 July 2017 -
UK MPL loans in triple-A RMBS
The £290m Twin Bridges 2017-1 RMBS which priced last week represents the first time that lo...
News 18 July 2017 -
SCI Start the Week - 17 July
A look at the major activity in structured finance over the past seven days.
Pipeline Pipeline activity stepped up again last week. The additions consisted of eight ABS, an I...
News 17 July 2017 -
Atypical Dutch RMBS prepped
RNHB is in the market with an unusual Dutch RMBS backed by owner-occupied and buy-to-let mortgage lo...
News 17 July 2017 -
Job swaps round-up - 14 July
North America Mortgage Capital Trading has hired Bill Berliner to the newly created role of direct...
Job Swaps 14 July 2017 -
Ratings reviewed for payment disruption risk
Fitch and Moody's have placed a slew of US RMBS classes on rating watch negative, after Wells Fargo...
News 13 July 2017 -
SCI Start the Week - 10 July
A look at the major activity in structured finance over the past seven days
Pipeline Pipeline activity picked up a little last week, but remained fairly muted. Additions con...
News 10 July 2017 -
Job swaps round-up - 7 July
North America Mayer Brown has hired Jay Kallas as counsel in its Chicago office, focusing on struc...
Job Swaps 7 July 2017 -
BTL refinancing risk highlighted
Tighter policy guidance is influencing the range of products that UK buy-to-let mortgage lenders are...
News 5 July 2017 -
Reserve uncertainty weighs on legacy RMBS
It emerged last week that Wells Fargo withheld over US$90m in cashflow across 20 Bank of America-ori...
News 3 July 2017 -
SCI Start the Week - 3 July
A look at the major activity in structured finance over the past seven days
PipelineOnly a handful of transactions remained in the pipeline last week. Of these, RMBS accounted...
News 3 July 2017 -
Subprime and non-QM compared
Non-qualified mortgages (non-QM) are not equivalent to subprime mortgages made during the pre-crisis...
News 30 June 2017 -
Job swaps round-up - 30 June
North America Alexander Popov has joined Carlyle Group as md to lead the credit opportunities busi...
Job Swaps 30 June 2017 -
GSE SFR deal 'first of its kind'
The Fannie Mae Grantor Trust 2017-T1 single-family rental securitisation from April was the first tr...
News 29 June 2017 -
Euro secondary solid
The European securitisation secondary market remains solid despite distractions from primary and mon...
SCIWire 29 June 2017 -
Euro secondary steps up
Activity has started to step up across the European securitisation secondary market following an ext...
SCIWire 27 June 2017 -
SCI Start the Week - 26 June
A look at the major activity in structured finance over the past seven days
PipelineA mix of new deals - both in terms of collateral type and jurisdiction -...
News 26 June 2017 -
UK non-standard RMBS debut prepped
Optimum Credit is in the market with its first UK non-standard prime RMBS. The transaction is called...
News 22 June 2017 -
AIG's debut RMBS collateral 'among strongest'
American International Group (AIG), which has not previously participated in the issuance of RMBS, i...
News 20 June 2017 -
SCI Start the Week - 19 June
A look at the major activity in structured finance over the past seven days.
Pipeline A rush of ABS deals joined the pipeline last week, picking up from the limited activity of...
News 19 June 2017