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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).


  • RMBS 'to perform well' in 2017

    US RMBS will continue to perform well in 2017, with several trends from 2016 continuing int...

    News Round-up    7 December 2016
  • Arrow enters Italian market

    Arrow Global Group is entering the Italian market with the acquisition of Zenith Service. It will pu...

    Job Swaps    6 December 2016
  • North American outlook 'stable'

    Stability will likely remain for structured finance ratings in the US and Canada next year,...

    News Round-up    6 December 2016
  • CAS listings heading east

    Fannie Mae has listed all of its previously-issued Connecticut Avenue Securities on the Singapore Ex...

    News Round-up    6 December 2016
  • LatAm outlook 'stable'

    Latin American structured finance transactions should enjoy a stable credit environment next year, d...

    News Round-up    6 December 2016
  • Euro secondary quiet

    The European securitisation secondary market has had another quiet start to the week. Italy was un...

    SCIWire    6 December 2016
  • Chinese CLO outlook 'negative'

    The performance of assets backing Chinese auto loan ABS and RMBS will be stable throughout 2017, but...

    News Round-up    5 December 2016
  • SCI Start the Week - 5 December

    A look at the major activity in structured finance over the past seven days.

    SCI content this week is sponsored by BNY Mellon. All content this week is being made available free...

    News    5 December 2016
  • New entrants to boost issuance

    Moody's anticipates a slight increase in issuance of European ABS and RMBS next year. The agency exp...

    News Round-up    2 December 2016
  • STACR listings to be pulled

    Freddie Mac will request that its STACR debt notes, as well as debt securities and mortgage securiti...

    News Round-up    1 December 2016
  • CIRT pricing detail provided

    Fannie Mae is now making additional disclosures for its Credit Insurance Risk Transfer (CIRT) progra...

    News Round-up    1 December 2016
  • RPL RMBS characteristics surveyed

    Re-performing loan (RPL) RMBS issuance has remained steady since the launch of the first transaction...

    News Round-up    1 December 2016
  • Euro ABS/MBS distracted

    New deals are continuing to keep focus way from the European ABS/MBS secondary market. "Primary is...

    SCIWire    1 December 2016
  • Recovery analysis RFC issued

    S&P is requesting feedback on its structured finance recovery analysis of US RMBS, US and Ca...

    News Round-up    30 November 2016
  • Dynamic RMBS model introduced

    DBRS has launched the UK RMBS Insight Model, which aims to offer a different way to forecast expecte...

    News Round-up    30 November 2016
  • SFR portfolio values on the rise

    KBRA has affirmed each of the 151 ratings it has outstanding in the single-family rental&am...

    News Round-up    29 November 2016
  • Mortgage originations 'have peaked'

    The FHFA's decision to raise conforming loan limits for the first time in a decade has been welcomed...

    News Round-up    29 November 2016
  • Strong performance spurs SFR upgrades

    The class B, C and D notes of Invitation Homes 2013-SFR1 have been upgraded by Moody's as a result o...

    News Round-up    29 November 2016
  • Rare Irish RMBS priced

    Lone Star has privately placed a rare Irish non-conforming RMBS. Dubbed European Residential Loan Se...

    News    29 November 2016
  • Euro secondary surge

    There is a surge in activity throughout the European securitisation secondary market. Activity has...

    SCIWire    29 November 2016
  • SCI Start the Week - 28 November

    A look at the major activity in structured finance over the past seven days.

    Pipeline With the week dominated by Thanksgiving, there were few pipeline additions. These amounted...

    News    28 November 2016