Tag Archive for Mortgage Backed Securities

New Rental Securitization Deal Likely Heralds Double Dip in Housing – Shah Gilani

Today, in New York, investors will be pitched the first-ever REO-to-rental securitization deal. The $500 million deal bundles foreclosed single-family homes, “real-estate-owned” by Blackstone Group, into securities that pass-through rental payments to investors.

The new securitization of rental properties comes at a time when home prices have rebounded dramatically across the country. But rather than confirming a bull market in housing, the “trade,” as Reuters calls the transaction, likely heralds a coming double-dip.

The upward trajectory of housing prices, fueled by private equity companies and hedge funds’ cash purchases, now faces institutional liquidity demands – and their potential exit.

Here’s what the Blackstone deal is all about, why its structure is problematic, how the ratings agencies will view it, and what it portends for the future.

New York AG hires prosecutor for mortgage probe | Reuters

(Reuters) – New York Attorney General Eric Schneiderman has hired a former federal prosecutor to help bring lawsuits over misconduct in the mortgage-backed securities market during the financial crisis. Virginia Chavez Romano, a former assistant U.S. attorney in New York, will help Schneiderman as he coordinates with a federal task force on the mortgage meltdown,…