Residential mortgage backed securities

Residential mortgage backed securities (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 ?
The criteria report summarizes Fitch's current criteria for estimating losses on Canadian residential mortgage loans collateralizing covered bond programs as well as Residential Mortgage Backed Securities. Loan interest, legal cost, sales commissions, and other expenses associated with maintenance and upkeep of the property during the liquidation period, analysed as part of an accounting-based loss severity framework, which determines total proceeds available to investors upon liquidation.
The settlement stems from litigation against UBS for losses by Members United Corporate FCU and Southwest Corporate FCU related to purchases of residential mortgage backed securities. While the amount does not yet include attorneys' fees and expenses, the settlement increased from the original amount accepted by the regulator in February from $33 million in damages.
The company is a mortgage real estate investment trust that acquires, invests in and manages residential mortgage and real estate related assets, mainly residential mortgage backed securities for which the principal and interest payments are guaranteed by a US government agency or a US government-sponsored enterprise.
Nomura saw strong performance across all Securitized Products categories, retaining top-three rankings in four survey classifications, including for the fourth consecutive year 2 rankings in the Agency Structured Products Strategy and Residential Mortgage Backed Securities Strategy (RMBS) / Agency sectors.
The company said it intends to use the net proceeds from the offering to purchase non-agency mortgage assets (including prime jumbo residential whole loans, other mortgage loans and new issue non-agency residential mortgage backed securities, or RMBS), multi-family MBS, legacy non-agency RMBS and, to a lesser extent, agency RMBS.
UK lender Lloyds Banking Group plc (LON:LLOY) said it had agreed to shed a portfolio of US residential mortgage backed securities (RMBS) with a book value of some GBP2.7bn (USD4.1bn/EUR3.2bn) to institutions for an aggregate GBP3.3bn in cash.Country: USASector: Banking/Financial ServicesTarget: US residential mortgage backed securities (RMBS) with book value of USD4.1bnBuyer: Unnamed institutions, Goldman Sachs International Ltd Vendor: Lloyds TSB Group Pension Trust (No 1) Ltd , Lloyds Banking Group plc Deal size in USD: 5bnType: DivestmentStatus: AgreedComment: Price for sale of USD258.8m book value to oldman Sachs International is USD304.5m.
According to a statement from Heerlen, Stichting Pensioenfonds ABP and Goldman Sachs (NYSE: GS) have reached an agreement over a dispute regarding residential mortgage backed securities.
In October of last year, the DoJ (http://www.justice.gov/opa/pr/2012/October/12-opa-1196.html) filed its first suit against major Wall Street firms in connection with the collapse of residential mortgage backed securities (RMBS) market.
Five Oaks said it intends to use the net proceeds from the offering to purchase non-agency mortgage assets (including prime jumbo residential whole loans, other mortgage loans and new issue non-agency residential mortgage backed securities, or RMBS), multi-family MBS, legacy non-agency RMBS and, to a lesser extent, agency RMBS.
The bank completed the re-capitalisation process by buying back EUR1.15bn of outstanding residential mortgage backed securities (RMBS) issued by Kildare Securities Limited and Brunel Residential Mortgage Securitisation, at an increase of EUR150m on its original target, and a capital gain of EUR350m (USD471.45m).
Deutsche Bank AG (NYSE: DB) (DBK.DE) has said that it has appointed former Fannie Mae (NYSE: FNM) official Sal Mirran as Asia-Pacific head of residential mortgage backed securities, as the German bank increases its focus on originating and selling such products in the region.
Australia's Westpac Banking Corporation (WBC.AU) (NYSE: WBK) has priced AUD2.0bn of residential mortgage backed securities, the first offer of such securities by a major lender since 2007.

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