RMBS


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RMBS

Residential Mortgage-Backed Security

A derivative whose value is derived from home equity loans and mortgages on properties where people live. As with all mortgage-backed securities, this entitles the owner to a claim on the principal and interest payments on the particular mortgages underpinning the security. MBS's pay an interest rate that is usually related to the interest rates the homeowners are paying on their mortgages. The equivalent of the coupon on a mortgage backed security is a percentage of the interest and principal paid on the mortgages backing the security. An obvious risk to a residential MBS is the possibility that interest rates on home loans may decline, causing homeowners to refinance their mortgages and deprive the holder of the security from future interest payments.
References in periodicals archive ?
As an industry we recognize that the current RMBS market-a critical source of financing for the overall industry- needs continued development of best practices in order to grow and fulfil its full potential in supporting the U.
As Certificateholders have previously been notified by each RMBS Trustee, on May 14, 2012, Residential Capital, LLC, and certain of its direct and indirect subsidiaries (collectively, " ResCap ") filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code (the " Bankruptcy Code ") in the United States Bankruptcy Court for the Southern District of New York (the "Court" )( In re Residential Capital, LLC, Case No.
The performance of the Irish and Greek RMBS markets continued to deteriorate over the past year, it added.
CUNA Mutual said it relied on RBS's quantitative representations in deciding to purchase 15 certificates in the10 separate RMBS offerings.
Performance varies across three segments: transactions sponsored by government entities Infonavit and Fovissste perform well; bank RMBS exhibit mixed credit metrics; and non-bank-sponsored transactions backed by Sofoles loans remain stressed.
All of the RMBS trusts that were subject to the Offer are involved in active litigations against JPMorgan for breaches of representations and warranties.
RMBS Cash Flow Analysis Criteria' (April 19, 2012);
The Fund announced that it may elect to settle tendered RMBS securities prior to the expiration of the offer if an aggregate total of 72 remediation points has been reached or such condition is waived.
The strong credit performance of RMBS is expected to continue in 2002.
In addition, the unique feature in Australian RMBS of lenders mortgage insurance, which provides the primary credit enhancement to Australian RMBS, means that lenders do not generally hold subordinated notes in their deals, which would limit the amount they could raise.
The criteria report summarizes Fitch's current criteria for analyzing the structure of RMBS transactions.