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Morgan Stanley B&C Pass-Thru Downgraded
May 8, 2008
Class B-2 of Morgan Stanley mortgage pass-through certificates series 2002-AM3 has been downgraded from CC/DR2 to C/DR4 by Fitch Ratings.
Fitch also affirmed the ratings on five other classes in the transaction and removed class A-2 from Rating Watch Negative. The collateral consists of fixed- and adjustable-rate subprime mortgages.
Scratch-&-Dent Classes Downgraded
May 8, 2008
Thirteen classes in four scratch-and-dent mortgage-backed securities transactions issued by Credit Suisse Mortgage Corp. Trust have been downgraded by Fitch Ratings.
Fitch also affirmed the ratings on 29 classes from seven CSMC and CSFB scratch-and-dent issues.
Fitch Downgrades Subprime-Backed CDOs
May 8, 2008
Fitch Ratings has downgraded 30 classes of notes from eight collateralized debt obligations backed primarily or partly by subprime residential mortgage-backed securities.
The affected securities are: seven classes issued by Jupiter High-Grade CDO III Ltd.; five classes issued by Davis Square Funding III Ltd.; four classes issued by Pacific Bay CDO Ltd.; four classes issued by South Coast Funding II Ltd.; three classes issued by South Coast Funding VI Ltd.; three classes issued by Grenadier Funding Ltd.; three classes issued by Davis Square Funding II Inc.; and one class issued by Millstone Funding Ltd. Fitch attributed the downgrades to "significant collateral deterioration" in the portfolios' subprime RMBS and, in some cases, alternative-A RMBS, commercial MBS, prime MBS, and structured finance CDOs with underlying exposure to subprime RMBS.
1Q Foreclosures Set Another Record in MA
May 8, 2008
Foreclosures continue to reach new highs every month in Massachusetts, making the first quarter the highest on record for foreclosures, according to ForeclosuresMass.com, a provider of foreclosure data based in Framingham, Mass.
The company said 9,114 foreclosures were recorded in the first quarter, up 38% from the level of a year earlier. "Despite all of the attention being given to the foreclosure issue, nothing has changed," said Jeremy Shapiro, president and co-founder of ForeclosuresMass. "Homeowners facing foreclosure should not wait for a miracle cure to this problem. Rather, they should seek the help of qualified professionals to help them avoid foreclosure." The company can be found online at http://www.foreclosuresmass.com.
Interest Rising in Buying Foreclosed Homes
May 8, 2008
Interest in buying a foreclosed home is rising, but 69% of consumers have reservations about such a purchase, according to a survey released by Trulia.com, a San Francisco-based real estate website.
The survey, conducted by Harris Interactive, found that more than half of U.S. adults would be at least "somewhat likely" to consider buying a foreclosed home despite concerns about hidden costs (expressed by 69%), risk (35%), and home depreciation (33%). "What's striking about these findings is that while U.S. consumers recognize the purchasing opportunity presented by foreclosed homes, there are definitely some reservations about the process," said Pete Flint, co-founder and chief executive officer of Trulia. "By providing guidance from foreclosure experts combined with comprehensive information on foreclosed homes across the country, Trulia can help potential homeowners take full advantage of this market while avoiding the kind of risks that might otherwise make them hesitate." The company can be found online at http://www.trulia.com.
3 MSR Deals Out for Bids
May 8, 2008
Three large portfolios of mortgage servicing rights have just been put out for bidding.
Interactive Mortgage Advisors, Denver, is selling servicing rights on a $5.5 billion portfolio of subprime mortgage loans. The two-part offering includes both primary and master servicing rights on the portfolio. The portfolio has an average loan size of $160,686; an average weighted interest rate of 8.523%; an average weighted servicing fee of 45.3 basis points; and a total 30-day-plus delinquency rate of 19.6%. Bids are due May 28. Separately, IMA is also taking master and primary servicing bids on alternative-A and subprime deals involving $5.0 billion and $3.9 billion, respectively. The portfolios have similar characteristics to the previous one. Bids are due May 28. Also separately, the Prestwick Mortgage Group, Alexandria, Va., is brokering the sale of monthly flow servicing rights on an estimated $5 million per month of Fannie Mae loans. The seller desires to start deliveries in July. Bids are due May 21.
Countrywide's Subprime Delinquencies at 36%
May 8, 2008
At the end of March, 36% of subprime mortgages being serviced by Countrywide Financial Corp. were in some stage of delinquency, according to a recent public filing by the company.
Countrywide services roughly $100 billion in subprime mortgages, which means that nearly $36 billion worth of loans are at risk of going into foreclosure. According to the Quarterly Data Report, Countrywide is the nation's largest subprime servicer. The 90-day-plus late ratio on the portfolio is 21.04%. A year ago the 90-day rate was 7.82%. Countrywide is being sold to Bank of America, and the sale is expected to close by the end of the third quarter. The company, based in Calabasas, Calif., can be found on the Web at http://www.countrywide.com.
ResCap Will Sell Assets to Raise Cash
May 8, 2008
Facing a liquidity crunch, Residential Capital Corp. says it hopes to sell $600 million worth of assets by June 30 and is considering the auction of European mortgage-backed securities held on its balance sheet.
"We are highly leveraged relative to our cash flow," the company says in a new filing with the Securities and Exchange Commission. "There is a significant risk that we will not be able to meet our debt service obligations...." ResCap, the parent of GMAC Mortgage, Horsham, Pa., the nation's seventh-largest servicer, is renegotiating its bank loans and hopes to receive a $3.5 billion senior secured credit facility from its parent company, GMAC LLC. Hedge fund giant Cerberus Capital owns a controlling stake in GMAC.
Subprime-Backed CDOs Downgraded
May 7, 2008
Fitch Ratings has downgraded 12 classes of notes from three collateralized debt obligations backed partly by subprime residential mortgage-backed securities.
The affected securities are: six classes issued by Coronado CDO Ltd.; three classes issued by Blue Heron Funding VI Ltd.; and three classes issued by Blue Heron Funding VII Ltd. Fitch attributed the downgrades to "significant collateral deterioration" in the portfolios' subprime RMBS and, in some cases, alternative-A RMBS and structured finance CDOs with underlying exposure to subprime RMBS.
50+ Scratch-&-Dent Classes Downgraded
May 7, 2008
Over 50 classes in 19 scratch-and-dent mortgage-backed securities transactions from four issuers have been downgraded by Fitch Ratings.
The affected securities were: 32 classes from nine Structured Asset Securitizations Corp. issues; 12 classes from seven C-BASS Mortgage Loan Trust issues; six classes from two Goldman Sachs issues; and one class from a Wilshire issue. Fitch also placed 13 classes of securities on Rating Watch Negative and affirmed the ratings on nearly $1.4 billion of scratch-and-dent MBS.
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