RMBS

See: Residential Mortgage Backed Securities

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.

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Residential mortgage backed securities

References in periodicals archive ?

In addition, these rating actions, as well as the related deal and tranche performance information, are available in spreadsheet form on kbra.com in the accompanying KBRA RMBS Surveillance KCAT.

KBRA Upgrades and Affirms Classes from Eight RMBS Transactions

RMBS ratings, Fitch collects mortgage production data and information on many of the active participants in the sector.

Fitch Ratings: Fixed-Rate Still Loan of Choice for U.S. RMBS as LIBOR End Nears

The bank has signed a deal with the Department of Justice to end a lengthy investigation into its legacy securitisation, issuance and underwriting of RMBS issued between 2005 1nd 2007.

HSBC to settle US RMBS claims

24509) Juan Ospina and Harald Uhlig examine new data on the prices of non-agency RMBS. They find that total losses in the non-agency RMBS market through December 2013 were less than $350 billion, about 6.5 percent of their pre-crisis market value.

Evaluating the Role of Credit Ratings in the 2008 Crisis

As part of the agreement, DOJ said, Morgan Stanley acknowledged in writing that it failed to disclose critical information to would-be investors about the quality of the loans backing the RMBS and also about the firm's due-diligence practices.

Morgan Stanley pays $2.6 billion in settlement

The outstanding pool balance of Greek RMBS transactions rated by Moody's decreased by 11.8% to EUR 2.15 bln in April from EUR 2.44 bln a year earlier.

GREECE: April RMBS performance deteriorated

Noting that RMBS trusts have "become a familiar subject of litigation" in the Second Circuit, the Second Circuit affirmed the district court's denial of class standing.

Court holds RMBS-issued certificates exempt from the Trust Indenture Act

- Interest Rate Risks in UK RMBS -- Moody's Approach

Moody's Retires Secondary Rating Methodologies

"This is the RMBS Working Group's most recent legal enforcement targeting misconduct in the RMBS market, but it will not be our last," said Associate Attorney General Tony West, in a press release.

SEC, DOJ Sue BofA Over Mortgage-Backed Securities

AIG's underlying lawsuit alleges that financial institutions that created and/or sold the RMBS provided offering materials that assured AIG that each mortgage loan met certain quality standards.

Fed Siding with Banks in AIG Lawsuit Against BofA

Last month, however, the FRBNY publicly reversed itself and provided Bank of America, the successor to Countrywide Financial, with declarations from two FRBNY executives stating, among other things, that AIG transferred to Maiden Lane II through the APA all "litigation claims" relating to the RMBS that Maiden Lane II acquired.