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RMBS

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  • Senior noteholders in DSB Bank’s troubled Chapel 2003-I B.V. securitization want to overhaul transaction documents to help boost disclosure, as the originator faces potential duty of care claims that could affect the performance of the deal.
  • Germany’s HSH Nordbank has charged Ally Financial, JPMorgan Chase, Barclays and several other large banks for allegedly misrepresenting representing the risks of the loans underlying residential mortgage-backed securities they sold.
  • MassMutual has filed suit against Merrill Lynch, Fenner & Smith, Deutsche Bank Securities, Goldman Sachs, JPMorgan Securities and RBS Securities, charging them with misleading the insurer about the risks of the mortgages-backed securities they underwrote between 2005 and 2007 backed by loans issued by Residential Funding.
  • Market participants are optimistic of more new issuers tapping securitization markets for the first time in 2012.
  • FIG
    Italian RMBS deals from the Credico series can now drop Italian government bonds, which were used to back the transaction liquidity facilities and subordinated loans, and replace them with cash, following amendments to the deals over the Christmas break.
  • The rating implications of global bank downgrades on U.S. structured finance transactions is expected to be minimal, according to Fitch Ratings.
  • Performance of commercial real estate loans improved in 2011, but will like worsen again next year as a result of charge-offs and shrinking liquidity, according to Trepp.
  • Spreadsheets containing data on borrowing by banks and companies through the Federal Reserve’s various emergency-funding programs have been released to the public for the first through the efforts of Bloomberg News.
  • Sen. Scott Brown (R-Mass.) has asked U.S. Attorney General Eric Holder and Mary Schapiro, chairman of the U.S. Securities and Exchange Commission, to launch a criminal investigation of Fannie Mae and Freddie Mac.