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  • Structured finance lawyers are working to bring covered bonds to emerging markets in Eastern Europe, borrowing securitization technology in the absence of local legislation to facilitate the new sector.
  • The U.S. Securities and Exchange Commission is considering getting rid of real estate investment trusts’ tax-free status and their ability to lever, something Janaki Rao, agency mortgage strategist at Morgan Stanley, said would be a major problem for the residential mortgage-backed securities market.
  • Commercial real estate exposure remains the man driver behind problem loans for banks that collapsed in August, according to Trepp.
  • The Department of Housing and Urban Development has provided the state attorneys general with the results of its investigation of banks’ robo-signing practices.
  • Government demand that banks buy back some $120 billion in bad mortgages is slowing the U.S. economic recovery, says Paul Miller, an analyst with FBR Capital Markets.
  • The settlement between state attorneys general and banks over their so-called robo-signing practices will not free financial institutions from litigation involving mortgage securitization practices, according to Geoff Greenwood, a spokesman for Iowa Attorney General Tom Miller.
  • Ben Bernanke, chairman of the Federal Reserve, said U.S. banks’ exposure to the peripheral European countries—namely, Greece, Ireland and Portugal—is small and manageable.
  • Prudential Mortgage Capital has hired Scott Heath as a loan officer responsible for originating commercial mortgage-backed loans for securitization by the Liberty Island Group.
  • Kensington Mortgages, the London-based home lending subsidiary of Investec, is being tipped for a return to the U.K. residential mortgage securitization arena.