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Securitization People and Markets

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  • Deteriorating performance has prompted Moody’s Investors Service to downgrade most of $1.55 billion of prime jumbo residential mortgage-backed securities.
  • Standard & Poor’s has approved LenderLive Network as a third-party due diligence provider of results in the agency’s process of rating residential mortgage-backed securities.
  • Barclays Capital has added Mahesh Rajagopalan and Kahif Gilani as director and v.p. to its securitized products origination group.
  • The Federal Housing Finance Agency has ordered Fannie Mae and Freddie Mac to align procedures and incentives for mortgage servicers handling delinquent mortgages.
  • More than 500 banks owe an estimated $146 billion in repayments to the Department of the Treasury for bail-out funds they received through the Troubled Asset Relief Program, according to the Special Inspector General of TARP.
  • Mortgage servicers saw a 23% decline in income in the first quarter as the result of longer foreclosure timelines and regulatory crackdown on fees they charge, according to Lender Processing Services.
  • The aggregate value of commercial real estate loans that collateralize mortgage-backed securities remained flat in March to 79.8%, down from 79.9% in the preceding month, according to DebtX.
  • Bad assets at more than 8,000 U.S. banks surged 149% in 2008, when the financial crisis began, according data from the Federal Deposit Insurance Corp. analyzed by Msnbc.com and the Investigative Report Workshop at American University.
  • Ben Bernanke, chairman of the Federal Reserve, said in the central bank’s first-ever news conference that its bond-buying program will conclude at the end of June as originally planned.