Welcome to Las Vegas, for the 2009 American Securitization Forum

[Slimprofits]

February 8 - 11, 2009
The Venetian & Palazzo Resorts
BY AND FOR THE SECURITIZATION INDUSTRY

Please be advised that Sandra Thompson, Director of the Division of Supervision and Consumer Protection at the FDIC, will be speaking in place of FDIC Chairman Bair at ASF 2009. Director Thompson will speak at 9:00 am (PST) on Monday, February 9, 2009. Please click here for more information on Director Thompson.

http://www.americansecuritization.co...y.aspx?id=2282

The agenda for ASF 2009 has been published, and is available here. As you will note, ASF 2009 combines general sessions on topics of current interest--policy and industry actions to rebuild the market; the implications of TARP to the securitization market; mortgage servicing and loss mitigation trends, to name just a few--with break-out sessions focusing on individual asset classes. In light of current market dynamics, this year's breakout sessions will emphasize secondary market trading and relative value opportunities in various product sectors and asset classes. New sessions have also been added to provide insight and understanding on issues and trends driven by the ongoing market dislocation--distressed debt investing strategies, vehicle unwind and workout strategies, covered bonds, pricing and valuation tools and challenges, and a host of other cutting-edge topics. From a content perspective, this year's program has never been richer or more meaningful.

excerpt from George P. Miller - Executive Director, ASF

[metalman]

Re: Welcome to Las Vegas, for the 2009 American Securitization Forum

February 8 - 11, 2009
The Venetian & Palazzo Resorts
BY AND FOR THE SECURITIZATION INDUSTRY

Please be advised that Sandra Thompson, Director of the Division of Supervision and Consumer Protection at the FDIC, will be speaking in place of FDIC Chairman Bair at ASF 2009. Director Thompson will speak at 9:00 am (PST) on Monday, February 9, 2009. Please click here for more information on Director Thompson.

http://www.americansecuritization.co...y.aspx?id=2282

The agenda for ASF 2009 has been published, and is available here. As you will note, ASF 2009 combines general sessions on topics of current interest--policy and industry actions to rebuild the market; the implications of TARP to the securitization market; mortgage servicing and loss mitigation trends, to name just a few--with break-out sessions focusing on individual asset classes. In light of current market dynamics, this year's breakout sessions will emphasize secondary market trading and relative value opportunities in various product sectors and asset classes. New sessions have also been added to provide insight and understanding on issues and trends driven by the ongoing market dislocation--distressed debt investing strategies, vehicle unwind and workout strategies, covered bonds, pricing and valuation tools and challenges, and a host of other cutting-edge topics. From a content perspective, this year's program has never been richer or more meaningful.

excerpt from George P. Miller - Executive Director, ASF

where's hunter thompson when we need him.

[Slimprofits]

Re: Welcome to Las Vegas, for the 2009 American Securitization Forum

Before last fall's financial crisis, banks provided only $8 trillion of the roughly $25 billion in loans outstanding in the United States, while traditional bond markets provided another $7 trillion, according to the Federal Reserve. The largest share of the borrowed funds -- $10 trillion -- came from securitized loan markets that barely existed two decades ago.

[..]

"It's hard for banks to suddenly take up all this other slack, because it requires a certain expertise to make good loans and service those loans," said Mr. Regalia. "They don't have the back office at this point."

Many legislators in Congress complain that banks aren't lending, and cite that as an excuse to vote against further bank bailout funds. Their constituents are angry that banks seemingly are not meeting their needs despite massive cash infusions from the Treasury Department. But Mr. Regalia said these critics are wrong.

"Banks are lending more, but 70 percent of the system isn't there anymore," he said. "They're doing their jobs. They're being careful. But at the same time the rest of the system has so collapsed that we're still woefully short of credit."

http://www.washingtontimes.com/news/...edit-collapse/

*****

This article from the Washington Times is a great one to send around to friends and family that like me personally, aren't exactly finance wizards. Explains in plain English how/why 70% of the supply for the U.S. consumer and commercial lending market has dried up since mid 2007.

[santafe2]

Re: Welcome to Las Vegas, for the 2009 American Securitization Forum

where's hunter thompson when we need him.

He chose to opt out. Big talker, little walker. The press is a lot like that.

[vanvaley1]

Re: Welcome to Las Vegas, for the 2009 American Securitization Forum

It's been our experience recently that a lot of loan applications aren't getting funded. The last home we sold was from a father's line of credit. The bank didn't fund the kids loan application. The one before that was a conventional loan with very strong income and credit history. What we're seeing now is a lot of short-sales falling through, request for modification of loans being rejected, and a less than enthusiatic loan solicitation from lender representatives. Anybody else have a different experience to share?

Does anybody know if statistics are kept on short-sales that TFT'd and/or rejections of modification of loan requests?

[santafe2]

Re: Welcome to Las Vegas, for the 2009 American Securitization Forum

It's been our experience recently that a lot of loan applications aren't getting funded. The last home we sold was from a father's line of credit. The bank didn't fund the kids loan application. The one before that was a conventional loan with very strong income and credit history. What we're seeing now is a lot of short-sales falling through, request for modification of loans being rejected, and a less than enthusiatic loan solicitation from lender representatives. Anybody else have a different experience to share?

Does anybody know if statistics are kept on short-sales that TFT'd and/or rejections of modification of loan requests?

See Sean O'Toole's foreclosureradar.com and read his occasional posts on iTulip for great insights on the housing market.

http://www.foreclosureradar.com/

[Slimprofits]

Re: Welcome to Las Vegas, for the 2009 American Securitization Forum

First Deal Backed By FDIC-Guaranteed Debt Wraps February 11, 2009

--Leela Parker

The first funding vehicle for a pool of Federal Deposit Insurance Corp.-guaranteed debt funding vehicle, Pooled Funding Trust I, has issued $413.9 million in pass-through securities. The trust issued the three-year fixed-rate securities in order to acquire the newly-issued FDIC ...

*****

related: Pooled Funding Trust I Pass-Through Certificates Rated 'AAA' Based On FDIC Guarantee Of Trust Assets

Feb. 11, 2009--Standard&Poor's Ratings Services said today that it assigned its 'AAA' senior unsecured debt rating to the $413.9 million Pooled Funding Trust I Pass-Through Certificates, due Feb. 15, 2012. The certificates' underlying collateral is debt issued under the FDIC's Temporary Liquidity Guarantee Program (TLGP), which is backed by the full faith and credit of the U.S. government (AAA/Stable/A-1+). The trust certificates represent an undivided beneficial interest in the assets of the trust and the rights to payments made on such securities. The assets of the trust are made up of debt issued by various banks and bank holding companies that we do not rate. We did not assess the creditworthiness of the...

[Slimprofits]

Re: Welcome to Las Vegas, for the 2009 American Securitization Forum

EU doubts 'twin track' on securitisation will work

Wed Feb 11, 2009 12:35pm GMT

EU Internal Market Commissioner Charlie McCreevy has proposed that banks retain 5 percent of the securitised products they sell so they stick to good underwriting standards.

EU states and the European Parliament have the final say.

The bloc's governments have already given a preliminary nod to McCreevy's plan but some lawmakers -- spurred on by banks -- want to distinguish between "good" and "bad" securitised products with retention only applied to the latter.

One of McCreevy's top officials told parliament's economic affairs committee a twin-track approach won't work and would make verifying transposition of the law into national rules impossible.

"We have paid the price for flexibility. We want clarity. The party is over in the industry and the rules have to change. Some people don't have the understanding that we are in a different mindset today," Patrick Pearson told the committee.

"We don't know what good securitisation is. We have to define what it means. The answer is very simple, the answer is five percent or more. If not, the Commission cannot check transposition in future," Pearson said.

cont.

The Europeans are moving quickly on regulations.

[vanvaley1]

Re: Welcome to Las Vegas, for the 2009 American Securitization Forum

See Sean O'Toole's foreclosureradar.com and read his occasional posts on iTulip for great insights on the housing market.

http://www.foreclosureradar.com/

Thanks. Interesting site. But I'm skeptical that banks are enthusiastically looking for borrowers. So far, in the folks we're trying to help, the banks appear to be interested in finding reasons not to fund. Not that I'm frowning bout them being careful now...a wee bit late...but some of the reasons for rejections are getting a bit 'out there'. One comes to mind of some buyers trying to get a house who apparently are well qualified but a government agency demands a 'modern' rewriting of a well agreement before lending...so says the bank. It would be interesting to find a memo someplace in the matrix of 'banking land' that suggested that the banks would rather hold on to the capital they've captured from the taxpayer than spend it on them.

[rjwjr]

Re: Welcome to Las Vegas, for the 2009 American Securitization Forum

Thanks. Interesting site. But I'm skeptical that banks are enthusiastically looking for borrowers.

I'm skeptical that there are many borrowers to go looking for.

[cjppjc]

Re: Welcome to Las Vegas, for the 2009 American Securitization Forum

Thanks. Interesting site. But I'm skeptical that banks are enthusiastically looking for borrowers. So far, in the folks we're trying to help, the banks appear to be interested in finding reasons not to fund. Not that I'm frowning bout them being careful now...a wee bit late...but some of the reasons for rejections are getting a bit 'out there'. One comes to mind of some buyers trying to get a house who apparently are well qualified but a government agency demands a 'modern' rewriting of a well agreement before lending...so says the bank. It would be interesting to find a memo someplace in the matrix of 'banking land' that suggested that the banks would rather hold on to the capital they've captured from the taxpayer than spend it on them.

That would probably be an FHA loan. They are tough loans in bad times. In good times the underwritters looked the other way on a lot of regulations. Lot size, private well agrements. easments, peeling paint, older roofs. etc.

[cjppjc]

Re: Welcome to Las Vegas, for the 2009 American Securitization Forum

I'm skeptical that there are many borrowers to go looking for.

Demand is far behind supply that is for sure. Keep in mind this is a slow time of the year in a large part of the country. It will pick up especially if rates rise.

[Glenn Black]

Re: Welcome to Las Vegas, for the 2009 American Securitization Forum

Hmmm...

5% retention to ensure good underwriting procedures.

5% seems like about the hand slap that amounts to a license to defraud, and I only have to pay 5% for the right to get 95% from those idiot saps I sell this paper to. And I assume the government guarantee is void on the bankster's 5%???

So in effect, the banksters pick up 95% with a 5% sales commission, and when it all blows up, the government (ie. us, the taxpayers) get stuck paying out the guarantees on the 95%.

Gee, sounds like an ideal investment scheme

Where do they come up with this crap?

About 20 years ago, deep sea mining of magnesium nodules was done. To get a license, governments got a share. However, mining companies had the data & inside knowledge. How would this be shared evenly with "partners" who were at an information disadvantage?

They decided that each mining company would do their investigations, and would form two packages of leases. The government partner got to choose first. If insider info was used by the miner to stack the deck, the miner only had a 50% chance of getting a "good" package vs. a "lemon", so the miner would ensure the two packages were as equal as possible.

Could something like that be used here to keep the inside info of the banksters in check when they did the securitization bundling?

[tombat1913]

Re: Welcome to Las Vegas, for the 2009 American Securitization Forum

Thanks. Interesting site. But I'm skeptical that banks are enthusiastically looking for borrowers. So far, in the folks we're trying to help, the banks appear to be interested in finding reasons not to fund. Not that I'm frowning bout them being careful now...a wee bit late...but some of the reasons for rejections are getting a bit 'out there'. One comes to mind of some buyers trying to get a house who apparently are well qualified but a government agency demands a 'modern' rewriting of a well agreement before lending...so says the bank. It would be interesting to find a memo someplace in the matrix of 'banking land' that suggested that the banks would rather hold on to the capital they've captured from the taxpayer than spend it on them.

Perhaps this link provided by Rajiv is what you're looking for?

[Uno]

Re: Welcome to Las Vegas, for the 2009 American Securitization Forum

In the real world FHA lenders are doing great this year, not silly money, but are pulling in much more $$ then say a typical corporate economist. There seem to be more then enough borrowers in my part of town.

Jumbos are harder to get, but still easy if you can actually afford the mortgage by traditional measures.

Perhaps the real action is looking at distressed mortgages, deep discounts, returns look better then funding new mortgages on still overpriced homes.

Ever wonder what happend to the other financial brain behind Countrywide? Dave Sambol went to Bank of America, but what about Stan Kurland? The guy that was smart enough to bail before the crash.

Well he started a distressed mortgage fund and loss mitigation company! Ha Ha.

In other words, buy back the same loans from taxpayers for pennies on the dollar as they got GW Bush to dump onto (I mean purchased by) taxpayers at full, top of market price, as his last presidential act. LOL.

PennyMac (ha ha, love the name) http://www.pennymacusa.com/

"PennyMac is a different kind of mortgage company,.... " ... ha ha ha ha ...

I predict that there will be new fortunes made buying back mortgages from taxpayers for pennies on the dollar. Politicians will probably call it something like re-privatization. GW Bush ... the gift the keeps giving. LOL.