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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).


  • Euro secondary slowdown

    The end of year slowdown in the European securitisation secondary market looks to be increasing. F...

    SCIWire    11 December 2015
  • BlackBox data, analytics acquired

    Moody's Corporation has acquired the RMBS data and analytics assets of BlackBox Logic. The loan-leve...

    Job Swaps    10 December 2015
  • Japanese credit outlook 'strong'

    The credit quality and performance of Japanese ABS, RMBS and CMBS should remain strong in 2016, says...

    News Round-up    10 December 2015
  • US outlook stable with caveats

    The outlook for US structured finance is stable to positive overall next year, says Fitch. However,...

    News Round-up    10 December 2015
  • Euro secondary mixed

    It's turning into a typically quiet December across most of the European securitisation secondary ma...

    SCIWire    10 December 2015
  • TRID violations prompt concern

    US mortgage lenders could face a tough time complying with the US CFPB's recently...

    News Round-up    10 December 2015
  • Latest SPO sale completed

    Freddie Mac has sold via auction 5,311 deeply delinquent non-performing loans (NPLs) serviced by Wel...

    News Round-up    9 December 2015
  • ABS, RMBS improvements expected

    Improving credit quality in 2016 will benefit European RMBS and ABS, says Moody's. However, a divide...

    News Round-up    9 December 2015
  • Euro ABS/MBS stable

    The European ABS/MBS secondary market remains stable amid wider market volatility. "Overall our ma...

    SCIWire    9 December 2015
  • Space for rent

    Multi-borrower SFR segment set for growth

    Of the 26 single-family rental securitisations issued since the market's inception - total...

    News Analysis    9 December 2015
  • GSE vet moves on

    Jay Kirsch has joined Greystone as md, focusing on production of small balance loans across the Fred...

    Job Swaps    8 December 2015
  • Irish real estate portfolio unloaded

    RBS subsidiaries Ulster Bank and Ulster Bank Ireland will dispose of a portfolio of Irish real estat...

    News Round-up    8 December 2015
  • Participation certificate debuts

    Sarana Multigriya Finansial has listed on the Indonesia Stock Exchange (IDX) the country's first ABS...

    News Round-up    8 December 2015
  • Euro secondary slows

    Yesterday saw a fairly slow session across the European securitisation secondary market, but it coul...

    SCIWire    8 December 2015
  • SCI Start the Week - 7 December

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

    Pipeline Several deals joined the pipeline in the first week of December. The final count consisted...

    News    7 December 2015
  • ARP 2014-SFR1 supported

    The American Residential Properties and American Homes 4 Rent merger (SCI 4 December) is credit posi...

    News Round-up    7 December 2015
  • Euro secondary unmoved

    Despite initial post-ECB softening on Friday across broader markets, the European securitisation sec...

    SCIWire    7 December 2015
  • Chinese RMBS RFC issued

    Moody's has published a request for comment on its proposed methodology for rating Chinese RMBS. The...

    News Round-up    4 December 2015
  • STACR issuance plotted

    Freddie Mac has released a 2016 STACR issuance calendar. The move coincides with the pricing of STAC...

    News Round-up    4 December 2015
  • Latest SFR merger announced

    American Homes 4 Rent and American Residential Properties are the latest SFR managers set to merge a...

    Job Swaps    4 December 2015
  • APAC ratings to stay stable

    Ratings and asset performance in Asia-Pacific are expected to be stable throughout 2016, says Fitch....

    News Round-up    4 December 2015