On June 10, Ginnie Mae announced its plans to implement a new mortgage-backed security program for manufactured housing loans. Ginnie Mae Release.
Month: June 2010
CFTC Advisory on U.S. Investors’ Ability to Trade in Foreign Security Futures Products
On June 8, the CFTC’s Division of Clearing and Intermediary Oversight published an Advisory clarifying the extent to which certain sophisticated U.S. customers may transact in foreign security futures products (FSFPs). The Advisory is in response to questions arising out of the SEC’s publication of an order on June 30, 2009, exempting certain sophisticated persons from provisions of the 1934 Act that prohibit the offer and sale of FSFPs to U.S. persons. Press Release. Advisory.
SandP Report on FDIC Safe Harbor NPR
On June 9, S&P released a report discussing the implications of the FDIC Securitization Safe Harbor NPR on the ratings analysis of U.S. bank-originated transactions. S&P Release.
Rating Agency Developments
On June 3, DBRS released its methodology for rating U.S. RMBS servicing advance transactions. DBRS Report.
On June 2, S&P published its approach to analyzing the cash flow of Australian and New Zealand RMBS. S&P Release.
On May 27, S&P released a request for comments on proposed changes to its methodology and assumptions for assessing counterparty and supporting party risk. On May 28, S&P also released a request for comments on proposed changes to counterparty and supporting party risk for structured transactions in Japan. Comments to both of the proposed criteria are requested by June 30. S&P Release. S&P Release (Japan).
On June 2, S&P released an advance notice of proposed changes to the methodologies and assumptions used to rate U.S. securitizations backed by small business loans. S&P Release.
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Securitization Class Action Court Order
On June 1, United States District Judge Rakoff issued an order giving reasons for a May 31 order in a class-action suit relating to mortgage pass-through certificates. Among other things, the order dismissed the plantiffs’ claim that the rating agencies served as statutory underwriters of the offerings. Court Order.
HAMP Supplemental Directive on Principal Forbearance
On June 4, Treasury released supplemental directive 10-05 under the HAMP program which sets forth (i) guidance on principal reduction and a principal reduction alternative, (ii) Treasury’s position regarding the applicability of the servicer safe harbor to residential loan modifications under HAMP, the Second Lien Modification Program and the Home Affordable Foreclosure Alternatives program, and (iii) Treasury’s position regarding the accounting treatment for HAMP modifications that include principal forbearance. Supplemental Directive. Principal Reduction Overview Alternative.
Rule 17g-5 Implementation
On June 2, S&P released an update on the implementation of the amended Rule 17g-5. S&P Release.
One June 2, DBRS released additional interpretations regarding implementation of the amended Rule 17g-5. DBRS Release.