cleanup call

Cleanup Call

Also called a cleanup buyback, an option in securitization transactions in which the issuer may reduce its own administrative expenses by buying back the remaining issue when the principal has been reduced to an insignificant amount, usually to less than 10% of the original issue. This option is often exercised for mortgage-backed securities.

cleanup call

Early redemption of the entire balance of a debt issue when a relatively small amount of the original issue remains outstanding. For example, mortgage-backed securities are gradually paid down as mortgages backing the bonds are paid off by homeowners. At some point the issuer of the mortgage-backed securities may decide to reduce its own administrative expenses by calling the balance of the issue.
Mentioned in ?
References in periodicals archive ?
Bill Robertson, director of the Bureau of Street Services, said his agency needs an additional $250,000 to assign crews that could respond within 10 minutes to a cleanup call.
The majority of the loans come from RTC 1992-8, which had reached its 10% cleanup call.
Fannie Mae's exercise of a cleanup call on our older MBS was a business decision," said Timothy Howard, Fannie Mae's executive vice president and chief financial officer.
On April 4, 2002, Fannie Mae announced a plan to exercise a cleanup call of MBS totaling approximately $1.
The announcement today means revised factors will be released for all MBS covered by the April 4, 2002 cleanup call, and for all Megas, REMICS and Stripped MBS payable on the 25th day of the month that include, in whole or in part, any MBS that were included in the rescinded calls.
However, future payments on these REMICs will be adjusted in accordance with industry practice to fully reflect the cleanup call rescission.
The guidance addresses the risk-based capital treatment for (1) split or partially rated instruments, (2) nonqualification of corporate bonds or other securities for the ratings-based approach, (3) spread accounts that function as credit-enhancing interest-only strips, (4) audits of internal credit risk rating systems, and (5) cleanup calls.
The guidance addresses risk-based capital treatment pertaining to (1) split or partially rated instruments, (2) nonqualification of corporate bonds or other securities for the ratings-based approach, (3) spread accounts that function as credit-enhancing interest-only strips, (4) audits of internal credit-risk rating systems, and (5) cleanup calls.
In general, the cleanup calls for removal of contaminated soils, backfilling excavated areas with clean soils, and restoring the properties.
With damages nearing $1 billion in Texas after more than 30 inches of rain have flooded the area, Rainbow International(R) Carpet Care and Restoration Specialist franchises are gearing up for the massive cleanup calls.