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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).


  • UK prime RMBS 'stable'

    UK prime RMBS continues to perform in a stable fashion, according to Moody's latest index results on...

    News Round-up    6 May 2016
  • Aussie housing turns corner

    Australian housing affordability deteriorated over the 12 months to the end of March, requiring home...

    News Round-up    6 May 2016
  • Argentina RMBS set to emerge

    Argentinean RMBS prospects could be boosted by the creation of a new inflation-adj...

    News Round-up    5 May 2016
  • RPL RMBS hitting expectations

    The early performance signals from US reperforming loan RMBS deals reveal that they have ma...

    News Round-up    5 May 2016
  • FNMA enhances CAS disclosures

    Fannie Mae has made further enhancements to its loan level disclosure data for its Connecticut Avenu...

    News Round-up    5 May 2016
  • Seattle MBS settlement agreed

    Bank of America has agreed to pay a US$190m settlement to the Federal Home Loan Bank of Seattle&...

    News Round-up    4 May 2016
  • Goldman settlement gets approval

    A US$272m settlement in one of the last remaining RMBS class action suits to come out of the financi...

    News Round-up    4 May 2016
  • Macro issues affecting Brazilian MBS

    Macroeconomic pressures on Brazil will continue to stress CMBS, says Fitch. Credit-linked CMBS will...

    News Round-up    4 May 2016
  • Argentina headwinds outlined

    Tighter economic policies implemented by Argentina's newly elected government could prove challengin...

    News Round-up    4 May 2016
  • Belgian resi delinquencies nudge up

    The performance of the Belgian RMBS market remained stable in the six months to February, according...

    News Round-up    3 May 2016
  • UK mortgage tool launches

    Moody's Analytics has launched UK Mortgage Portfolio Analyser (UK-MPA), a tool to assess and manage...

    News Round-up    29 April 2016
  • Irish RMBS delinquencies dropping

    Severe delinquencies among S&P-rated Irish RMBS transactions have declined over the past fou...

    News Round-up    29 April 2016
  • European placements trending down

    Only €14.3bn of securitised product was placed in Europe in 1Q16, according to AF...

    News Round-up    28 April 2016
  • Towd debuts WAC cap

    Towd Point Mortgage Funding 2016-Granite 1 is the first European securitisation to place a cap on it...

    News Round-up    28 April 2016
  • Rate floor ruling assessed

    A recent Madrid court ruling on interest rate floor clauses within retail mortgages should not pose...

    News Round-up    27 April 2016
  • Euro secondary picks up

    The European securitisation secondary market saw an increase in activity yesterday to go with the im...

    SCIWire    27 April 2016
  • Liquidity tops investor concerns

    While investor fears over China-related uncertainty have subsided, concerns regarding liquidity and...

    News    26 April 2016
  • FNMA to issue reperforming deals

    Fannie Mae will later this year begin securitising reperforming loans held on its balance sheet. Rep...

    News Round-up    26 April 2016
  • South Korean issuance up again

    South Korean ABS issuance was up by 16.8% in 1Q16 from 1Q15, according to the country's Financial Su...

    News Round-up    26 April 2016
  • Euro secondary steady

    The European securitisation secondary market continues to move steadily ahead. Tone continued to b...

    SCIWire    26 April 2016
  • Record Philippines deal prepped

    8990 Holdings has mandated China Bank Capital to arrange and underwrite a PHP5bn securitisation, whi...

    News Round-up    25 April 2016