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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).


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    The New York Supreme Court last week received a proposed severance order and partial final judgement...

    Job Swaps    12 May 2016
  • Euro secondary still sluggish

    Activity continues to be sluggish in the European securitisation secondary market despite the tone r...

    SCIWire    12 May 2016
  • SFIG TRID framework 'adequate'

    SFIG's draft proposal to standardise the framework for reviewing and grading loans for TILA-RESPA In...

    News    11 May 2016
  • Deal agent rankings assigned

    Morningstar Credit Ratings has assigned two new vendor rankings for the recently created roles of RM...

    News Round-up    11 May 2016
  • Insurers' structured holdings slip

    Life insurers held more than US$380bn of structured products securities at the end of 2015, which We...

    News    10 May 2016
  • UKAR transfer finalised

    Computershare has been appointed to undertake mortgage servicing for UK Asset Resolution, following...

    Job Swaps    10 May 2016
  • Euro ABS/MBS starts slow

    It was another slow start to the week for the European ABS/MBS secondary market. Yesterday's sessi...

    SCIWire    10 May 2016
  • Firm foundations

    RMBS breaks records, prepares for post-referendum issuance

    The £6.2bn Towd Point Mortgage Funding 2016-Granite1 RMBS that priced last month is the lar...

    News Analysis    10 May 2016
  • SCI Start the Week - 9 May

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

    Pipeline Last week's pipeline additions consisted of eight ABS, two RMBS and a single CMBS. The A...

    News    9 May 2016
  • Mixed energy effects for Euro RMBS

    While both Aberdeen and Groningen are affected by stress from the energy sector, mortgage arrears ha...

    News Round-up    9 May 2016
  • 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