Optional Call and Redemption Process for Non-Agency RMBS
A review of a large sample of non-agency RMBS transactions, which are backed by varying types of collateral, revealed that optional call eligibility varied depending upon the type and vintage of underlying collateral. Based on the review sample, the trusts, backed by subprime collateral, are the first to become eligible for an optional call, followed […]
Trustee Bond Administration Quality Varies Significantly
Under my direction, the Modeling and Analytics division of Oakleaf Group aggregates published loan level data for RMBS transactions and checks the “waterfall” cash allocation rules that apply to each trust. We have reconciled hundreds of trusts over thousands of remittance months administrated by all major trustees. Surprisingly, there is significant variation in the performance […]
Five Big Challenges of Servicing Modified Adjustable Rate Mortgages
Oakleaf has been performing audits on modified ARM and HELOC portfolios for over a decade. We have been seeing a higher incidence of problems associated with servicer books. Below are five of the biggest challenges that are currently trending: People are creative. In an apparent rush to add value, portfolio managers and loss mitigation teams […]
Resourcing for Initiatives
Now that you have received funding approval for your multi-year, cross-department corporate initiative, the clock is ticking. Large transformation projects typically involve data migration, systems changes, additional hands-on-deck and new skill sets. Business areas tend to lead these projects, and depending on your IT support, the business area may also own the selection and management […]
Reg AB II: Shelf Offerings Disclosure – Does More Data Yield a Clearer Picture of RMBS or PLS Markets a Year After New Regulations?
On August 27, 2014, the Securities and Exchange Commission adopted the final version of revisions to its Regulation AB, in so-called Reg AB II. With a tiered effective date of November 23, 2015 for new Forms 10-D and 10-K, and a more granular loan-level disclosure schedule (in xml format) due after November 23, 2016, compliance has been […]
Impact of CECL on Bank Capital and Earnings
There has been much focus (and rightly so) on modeling of the loan loss reserve under the new CECL standard. Less attention has been paid to the impact from CECL on a bank’s capital and earnings.
Oakleaf President & CEO Chris Milner’s Inaugural Blog
I have heretofore avoided blogging in a way that I hope is natural to someone of my generation. I grew up when computing was still a novelty, and though I personally enjoy all the new gadgets that technology is making available, I have stopped short of Instagramming and Twitter. And blogging… until now.
Appeal denied to overturn $839 million RMBS award
Plaintiffs win – Defendants Nomura and RBS tried unsuccessfully on appeal to prove the mortgage / bond losses were attributable to the broader financial crisis in 2008.