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  • Concerns about what will happen in the $5.5 trillion agency residential mortgage-backed securities market if lawmakers don’t reach an agreement on the debt ceiling could spark a selloff from overseas investors, spilling over to U.S. markets and driving up interest rates, market sources say.
  • Two properties underpinning the Westville Portfolio loan securitized in the £707.76 million ($1.14 million) U.K. Windermere XI commercial mortgage-backed deal have been offloaded.
  • The Federal Reserve Bank of New York's indefinite halt of Maiden Lane II auctions isn’t raising prices in the market.
  • LNR CDO VI, a re-securitization of the sub-investment grade bonds, or B-pieces, from commercial mortgage-backed securities deals from sponsor LNR Partners, is set to liquidate Friday after an event of default.
  • Sen. Barbara Boxer (D-Calif.) pitched her controversial mortgage refinancing plan to the Street on Tuesday, but analysts said that even if it is passed, it won’t start the refi wave investors fear.
  • Plain vanilla asset- and mortgage-backed deals are set to comprise the bulk of the structured finance sector for the foreseeable future, according to a study by the Bank of International Settlements, which has called on regulators to push for less product complexity to help boost secondary market liquidity.
  • Three commercial mortgage-backed securities deals totaling $3.7 billion were launched Monday, but traders and investors are not sure the market will be able to absorb so many deals at once.
  • The West Bromwich Building Society may be putting on hold its new residential mortgage-backed securitization, Kenrick 1, as investors grow cautious of new deals amid Europe’s spreading sovereign debt crisis.
  • Hatfield Philips, the European special servicer, said it avoided a fire sale of commercial real estate properties by restructuring the loan on a €940 million portfolio ($1.32 billion) of 100 commercial offices and retail premises in Germany.