Ocwen Financial and Assurant have reached an agreement to settle charges that the embattled mortgage servicer profited from kickbacks on force-placed insurance policies with struggling homeowners.
The issuer sold the most junior-ranking , double-B rated tranche at 350 basis points over one month Libor; 20 basis points inside a similar tranche of Invitation Homes' early April transaction.
The regulator confirmed that it does not consent to any extinguishing of liens held by Freddie Mac or Fannie Mae in connection with liens such as energy retrofit programs or homeownership association fees.
In general, recently established formal programs for sales of NPLs by the GSEs could help improve the market for U.S. banks looking to sell their own loans, according to Fitch Ratings.
Rental yields do not provide the complete picture about the profitability of a property because these properties also experience the highest vacancies.
Regulation AB governs registration, reporting and disclosure requirements for all things asset-backed. The Securities and Exchange Commission appears to be ready to update it significantly, but, nearly four years after changes were originally proposed, its not clear exactly what the Commission will do.
Concern is mounting among investors and analysts that Nationstar, Ocwen Financial and Walter Investment are getting so big so quickly that they are becoming too difficult to manage.
The proposal would introduce dissemination of trade prices for securities ranging from highly liquid credit card and auto ABS to smaller and more esoteric deals in asset classes such as time shares, to commercial mortgage-backed securities (CMBS) and highly structured CDOs and collateralized loan obligations.
Overall issuance growth will moderate in 2014, Fitch Ratings' managing director for asset backed securities says in the firm's outlook.
The servicer has a reputation for aggressively writing down principal, often multiple times.
Firm: 3i Debt Management
It's one of the biggest regulatory hurdles the market has faced since the financial crisis, and promises to bring wholesale changes to the structures of transactions as well as to the business models of managers. Clifford Chance partner Steven Kolyer weighs in.Current Issue