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RMBS

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  • The mortgage settlement between U.S. state attorneys general and the nation’s five largest mortgage servicers has had “marginal impact” on the performance of private-label residential mortgage-backed securities, so far, according to Fitch Ratings.
  • The U.S. Government Accountability Office has criticized the Federal Reserve Board and the Office of the Comptroller of the Currency for failing to adequately provide troubled homeowners with information on how they can obtain monetary relief.
  • Fitch Ratings has updated the criteria it uses to monitor and analyze outstanding U.S. residential mortgage-backed securities for potential rating changes, including a revised model for the prime sector; changes to servicer advancing assumptions for delinquent loans; the use of principal recovery percentages rather than break loss/loss coverage ratios to determine ratings; and revisions to how distressed ratings are determined, among other things.
  • The Office of the Comptroller of the Currency is warning banks about taking excessive risk in an effort to improve profitability in a weak and volatile market.
  • An initiative being considered in several municipalities in San Bernardino County, Calif., proposing that local governments may seize mortgages through the laws of eminent domain in order to help underwater borrowers to refinance sets a dangerous precedent, market players say.
  • UAE housing provider Tamweel has postponed its RMBS sukuk, having been poised to issue the deal last week. The complexity of the structure and lack of comparable transactions are among the factors weighing on the deal, although Tamweel said it based its decision on market feedback.
  • An initiative being considered in several municipalities in San Bernardino County, Calif., proposing that local governments may seize mortgages through the laws of eminent domain in order to help underwater borrowers to refinance sets a dangerous precedent, market players say.
  • Some investors in London are undisturbed by the prospect of Europe’s securitization market shifting from an AAA to a AA market.
  • UAE housing provider Tamweel has opted not to proceed with plans for an RMBS sukuk, having looked poised to issue the deal last week. The complexity of the structure and lack of comparable transactions are likely to have been among the factors weighing on the deal, although Tamweel limited itself to saying that it had based its decision on market feedback.