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 ?
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.
To settle the charges that it failed to reasonably supervise its traders, Nomura agreed in the two orders to be censured and to reimburse customers the full amount of firm profits earned on any RMBS or CMBS trades in which a misrepresentation was identified, paying over $20.7 million to RMBS customers and over $4.2 million to CMBS customers.
RMBS ratings, Fitch collects mortgage production data and information on many of the active participants in the sector.
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.
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.
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.
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.
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.
- Interest Rate Risks in UK RMBS -- Moody's Approach
"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.
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.
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.