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Fitch Assigns Final Ratings to Citigroup Mortgage Loan Trust 2015-2

NEW YORK–(BUSINESS WIRE)–

Link to Fitch Ratings’ Report: Citigroup Mortgage Loan Trust 2015-2 — Appendix

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=863049

Fitch Ratings has assigned the following ratings and Outlooks to two groups in Citigroup Mortgage Loan Trust 2015-2:

Group 1 Securities

–$75,728,000 class 1A1 ‘BBBsf’; Outlook Stable;

–$77,368,033 initial exchangeable class 1A2 not rated;

–$9,678,000 subsequent exchangeable class 1A3 ‘BBsf’; Outlook Stable;

–$9,072,000 subsequent exchangeable class 1A4 ‘Bsf’; Outlook Stable;

–$58,618,033 subsequent exchangeable class 1A5 not rated;

–$18,750,000 subsequent exchangeable class 1A6 ‘Bsf’; Outlook Stable;

–$43,964,000 subsequent exchangeable class 1A7 not rated;

–$14,654,033 subsequent exchangeable class 1A8 not rated.

Group 2 Securities

–$26,758,000 class 2A1 ‘BBBsf’; Outlook Stable;

–$12,569,031 class 2A2 not rated.

CMLTI 2015-2 is comprised of five groups. Fitch is rating five bonds from two of the groups. Two of the rated classes are the most senior tranche while the other three are subsequent exchangeable securities from group 1. Each group is a resecuritization of an ownership interest in a residential mortgage-backed security. As a resecuritization, the securities will receive their cash-flow from the underlying security. The Fitch-rated groups are collateralized with a senior class from Alt-A transactions issued from 2006 to 2007. Collateral performance has shown improvement over the past few years. The underlying pools have exhibited significant declines in the percentage of loans seriously delinquent. Also, the percentage of loans transitioning from current to delinquent has slowed as well.

For the Fitch rated groups, interest is paid pro-rata and principal is paid sequentially. Realized losses are applied reverse sequentially.

KEY RATING DRIVERS

Key rating drivers include the performance of the underlying pool as well as the collateral characteristics, such as sustainable loan-to-value ratio (sLTV), credit score and geographic concentration. For the Fitch rated groups, Fitch ran various prepayment speeds and loss timing scenarios in its analysis of the deal structure. This analysis was done to determine that the cash flow to the Fitch rated bonds would not be exposed to losses as a result of potential alternative cash flow timing stress scenarios.

Based on the collateral composition of the Group 1 underlying pool, Fitch assumed a base-case scenario expected loss (XL) of 34%. In the rating stress scenarios, Fitch assumed a ‘BBBsf’ XL of 51.33%, a ‘BBsf’ XL of 45.53% and a ‘Bsf’ XL of 40.13. Fitch ran these loss assumptions through 12 different interest rate, prepayment and timing scenarios and used the most conservative value to determine the required credit enhancement (CE). The required CE to support a ‘BBBsf’ rating is 50.54%, a ‘BBsf’ rating is 44.21% and a ‘Bsf’ rating is 38.29%. The lower CE compared to the XL is due to the underlying deal structure, which allows for excess spread.

Based on the collateral composition of the Group 2 underlying pool, Fitch assumed a base-case scenario XL of 20%. In the rating stress scenarios, Fitch assumed a ‘BBBsf’ XL of 33.8%. Fitch increased the model-expected loss severity on liquidated loans by 10% at each rating scenario to better reflect recent loss severity trends. Fitch ran the loss assumptions through 12 different interest rate, prepayment and timing scenarios and used the most conservative value to determine the required credit enhancement (CE). The required CE to support a ‘BBBsf’ rating is 31.96%. The lower CE compared to the XL is due to the underlying class, which still had roughly 3.5% of CE.

Fitch is assigning the ratings based on underlying pool collateral composition, the results of its cashflow analysis, review of final structure and supporting deal documents.

RATING SENSITIVITIES

Fitch analyzes each bond in a number of different scenarios to determine the likelihood of full principal recovery and timely interest. The scenario analysis incorporates various combinations of the following stressed assumptions: mortgage loss, loss timing, interest rates, prepayments, servicer advancing and loan modifications.

The analysis includes rating stress scenarios from ‘CCCsf’ to ‘AAAsf’. The ‘CCCsf’ scenario is intended to be the most likely base-case scenario. Rating scenarios above ‘CCCsf’ are increasingly more stressful and less likely outcomes. Although many variables are adjusted in the stress scenarios, the primary driver of the loss scenarios is the home price forecast assumption. In the ‘Bsf’ scenario, Fitch assumes home prices decline 10% below their long-term sustainable level. The home price decline assumption is increased by 5% at each higher rating category up to a 35% decline in the ‘AAAsf’ scenario.

The group-to-bond association for the Fitch-rated groups are as follows:

–Group 1 represents a 100% interest in the Lehman XS Trust, Series 2007-7N class 2A1A;

–Group 2 represents a 20.70% interest in the Washington Mutual Mortgage Pass-Through Certificates Series 2006-AR15 Trust Class 1A.

Additional information is available in the ‘Citigroup Mortgage Loan Trust 2015-2 Representations and Warranties Appendix, published Feb. 27 and available at ‘www.fitchratings.com‘.

Additional information is available at ‘www.fitchratings.com‘.

Applicable Criteria and Related Research:

–‘Global Structured Finance Rating Criteria’ (May 2014);

–‘U.S. RMBS Master Rating Criteria,’ (July 2014);

–‘U.S. RMBS Surveillance and Re-REMIC Criteria’ (June 2014);

–‘U.S. RMBS Loan Loss Model Criteria’ (November 2014);

–‘Counterparty Criteria for Structured Finance and Covered Bonds’ (May 2014);

–‘U.S. RMBS Cash Flow Analysis Criteria’ (April 2014);

–‘Criteria for Interest Rate Stresses in Structured Finance Transactions and Covered Bonds’ (December 2014);

–‘Rating Criteria for US Residential and Small Balance Commercial Mortgage Servicers’ (January 2014).

Applicable Criteria and Related Research:

Counterparty Criteria for Structured Finance and Covered Bonds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Criteria for Interest Rate Stresses in Structured Finance Transactions and Covered Bonds

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=838868

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

U.S. RMBS Master Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=750719

U.S. RMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=750110

U.S. RMBS Cash Flow Analysis Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=746027

Rating Criteria for US Residential and Small Balance Commercial Mortgage Servicers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=731747

U.S. RMBS Loan Loss Model Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=810788

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=980536

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY’S PUBLIC WEBSITE ‘WWW.FITCHRATINGS.COM‘. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

FinanceInvestment & Company InformationFitch Ratings Contact:

Fitch Ratings

Primary Analyst

Ryan O’Loughlin

Analyst

+1-212-908-0387

Fitch Ratings, Inc., 33 Whitehall Street, New York, NY 10004

or

Secondary Analyst

Grant Bailey

Managing Director

+1-212-908-0544

or

Committee Chairperson

Rui Pereira

Managing Director

+1-212-908-0766

or

Media Relations:

Sandro Scenga, +1-212-908-0278 (New York)

sandro.scenga@fitchratings.com […]

Greece requests euro zone loan extension, offers big concessions

* Athens uses vital EU wording to request extension

* Euro zone officials to discuss whether letter meets terms

* Greek bailout deal due to expire on Feb. 28

* State faces running out of cash by late March – source

* ECB raises emergency funding for Greek banks only modestly (Adds Dijsselbloem confirms euro zone ministers to meet Friday)

By Renee Maltezou and Jan Strupczewski

ATHENS/BRUSSELS, Feb 19 (Reuters) – Greece formally requested a six-month extension to its euro zone loan agreement on Thursday, offering major concessions as it raced to avoid running out of cash within weeks and overcome resistance from sceptical partners led by Germany.

With its EU/IMF bailout programme due to expire in little more than a week, the government of leftist Prime Minister Alexis Tsipras urgently needs to secure a financial lifeline to keep the country afloat beyond late March.

Euro zone finance ministers will meet on Friday afternoon in Brussels to consider the request, the chairman of their Eurogroup, Jeroen Dijsselbloem, said in a tweet.

That raised hopes of a deal to avert possible bankruptcy and a Greek exit from the 19-nation currency area.

A government official told Reuters that Athens had asked for an extension to its “Master Financial Assistance Facility Agreement” with the euro zone. However, he insisted the government was proposing different terms from its current bailout obligations.

Greece had committed to maintain fiscal balance during the interim period, take immediate reforms to fight tax evasion and corruption, and measures to deal with what Athens calls its “humanitarian crisis” and kick-start economic growth, he said.

In the document seen by Reuters, Greece pledged to meet its financial obligations to all creditors, recognise the existing EU/IMF programme as the legally binding framework and refrain from unilateral action that would undermine the fiscal targets.

Crucially, it accepted that the extension would be monitored by the European Commission, European Central Bank and International Monetary Fund, a climbdown by Tsipras who had vowed to end cooperation with “troika” inspectors accused of inflicting deep economic and social damage on Greece.

The six month interim period would be used to negotiate a long-term deal for recovery and growth incorporating further debt relief measures promised by the Eurogroup in 2012.

Euro zone partners have so far said Athens must comply with the terms of the current bailout, which require it to run a 3 percent primary budget surplus this year, before debt service payments.

Senior euro zone officials were due to hold a teleconference later on Thursday to discuss the Greek application.

The wording chosen could help to satisfy at least some of the concerns that have held up agreement over the past two weeks, allowing Athens to avoid saying it is extending the current programme that it opposes while creditors can avoid accepting a “loan agreement” without strings attached.

Crucial details remain to be clarified on the fiscal targets, labour market reforms, privatisations and other measures due to be implemented under the existing programme.

Government spokesman Gabriel Sakellaridis dismissed a German newspaper report that Athens was under pressure to impose capital controls on Greeks pulling their money out of local banks, telling Reuters that such a scenario “had no bearing on reality”.

An ECB spokeswoman also denied the Frankfurter Allgemeine Zeitung report, saying there had been no discussion of capital controls at a meeting of the central bank’s Governing Council on Wednesday, which slightly raised the limit on emergency lending to Greek banks.

Greek stocks rose on Thursday’s developments, with the benchmark Athens stock index up 2 percent while banks gained 9 percent.

“We are doing everything to reach a mutually beneficial agreement. Our aim is to conclude this agreement soon,” Sakellaridis told Skai TV earlier on Thursday. “We are trying to find common points.”

GERMAN COMPROMISE?

EU paymaster Germany and fellow euro zone governments have so far insisted no loan deal without the full bailout conditions is on the table. Tsipras promised to ditch austerity measures imposed by the lenders when he was elected last month.

German Finance Minister Wolfgang Schaeuble has poured scorn on suggestions that Athens could negotiate an extension of euro zone funding without making any promises to push on with budget cuts and economic reforms.

But on Wednesday he indicated there may be some possibility of a compromise. “Our room for manoeuvre is limited,” he said during a debate in Berlin, adding, “We must keep in mind that we have a huge responsibility to keep Europe stable.”

Greek Finance Minister Yanis Varoufakis expressed confidence on Wednesday that euro zone finance ministers would approve the Athens government’s proposal on Friday. “The application will be written in such a way so that it will satisfy both the Greek side and the president of the Eurogroup,” he said.

Greece’s finances are in peril. It is burning through its cash reserves and could run out of money by the end of March without fresh funds, a person familiar with the figures said.

Likewise its banks are dependent on the emergency funding controlled by the ECB in order to pay out depositors who have been withdrawing their cash. The ECB agreed on Wednesday to raise a cap on funding available under its Emergency Liquidity Assistance scheme to 68.3 billion euros (US$78 billion), a person familiar with the ECB talks said.

That was a rise of just 3.3 billion euros, less than Greece had requested. The modest increase raises the pressure for a compromise at the Eurogroup. One senior banker said it would be enough to keep Greek banks afloat only for another week if present outflow trends persist.

Euro zone finance ministers rejected Greek proposals to avoid the bailout conditions at a meeting on Monday.

German Chancellor Angela Merkel made clear on Wednesday that Athens would have to give as well as take in negotiations.

“If countries are in trouble, we show solidarity,” she said in a speech to conservative supporters, naming Greece and other euro zone countries that had to take bailouts during the debt crisis. But she added, “Solidarity is not a one-way street. Solidarity and efforts by the countries themselves are two sides of the same coin. And this won’t change.” (Additional reporting by Renee Maltezou and Deepa Babington in Athens, Jan Strupczewski in Brussels, Gernot Heller, Michael Nienaber and Caroline Copley in Berlin, Jason Lange in Washington and Paul Carrel in Frankfurt; Writing by David Stamp and Deepa Babington; Editing by Peter Graff and Paul Taylor)

Politics & GovernmentBudget, Tax & EconomyECB […]

Greece submits request for loan extension from sceptical euro zone

* Athens uses vital EU wording to request extension

* Euro zone officials to discuss whether letter meets terms

* Greek bailout deal due to expire on Feb. 28

* State faces running out of cash by late March – source

* ECB raises emergency funding for Greek banks only modestly (Adds)

By Renee Maltezou and George Georgiopoulos

ATHENS, Feb 19 (Reuters) – Greece formally requested a six-month extension to its euro zone loan agreement on Thursday as it races to avoid running out of cash within weeks and overcome resistance from sceptical partners led by Germany.

With its EU/IMF bailout programme due to expire in little more than a week, the government of leftist Prime Minister Alexis Tsipras urgently needs to secure a financial lifeline to keep the country afloat beyond late March.

Specifically, Athens asked for an extension to its so-called “Master Financial Assistance Facility Agreement” with the euro zone, the official told Reuters. However, Greece is proposing that the terms are different from its current bailout obligations, the official said.

Jeroen Dijsselbloem, chairman of the Eurogroup of finance ministers of the currency area, confirmed the news, tweeting: “Received Greek request for six-month extension.” He gave no further details.

The request boosted hopes for a last minute compromise to avert a Greek bankruptcy and exit from the euro zone however it was not clear if the proposal would be acceptable to euro zone partners who insist Athens comply with all bailout terms.

Senior euro zone officials were due to hold a teleconference later on Thursday to discuss the Greek application. If they are satisfied, then Eurogroup finance ministers will hold a conference call on Friday to conclude an agreement, euro zone sources said.

The wording chosen could help satisfy at least some of the concerns that have held up agreement over the past two weeks, allowing Athens to avoid saying it is extending the current programme that it opposes while creditors can avoid accepting a “loan agreement” without strings attached.

However, crucial details remain to be clarified on fiscal targets, labour market reforms, privatisations and other measures due to be implemented under the existing programme.

Government spokesman Gabriel Sakellaridis dismissed a German newspaper report that Athens was under pressure to impose capital controls, telling Reuters that such a scenario “had no bearing on reality”.

An ECB spokeswoman also denied the Frankfurter Allgemeine Zeitung report, saying there had been no discussion of capital controls at a meeting of the central bank’s governing council on Wednesday, which slightly raised the limit on emergency lending to Greek banks.

Greek stocks rose on Thursday’s developments, with the benchmark Athens stock index up 2 percent while banks gained 4.8 percent.

“We are doing everything to reach a mutually beneficial agreement. Our aim is to conclude this agreement soon,” Sakellaridis told Skai TV earlier on Thursday. “We are trying to find common points.”

GERMAN COMPROMISE?

EU paymaster Germany and fellow euro zone governments have so far insisted no loan deal without the full bailout conditions is on the table. Tsipras promised to ditch austerity measures imposed by the lenders when he was elected last month.

German Finance Minister Wolfgang Schaeuble has poured scorn on suggestions that Athens could negotiate an extension of euro zone funding without making any promises to push on with budget cuts and economic reforms.

But on Wednesday he indicated there may be some possibility of a compromise. “Our room for manoeuvre is limited,” he said during a debate in Berlin, adding, “We must keep in mind that we have a huge responsibility to keep Europe stable.”

Greek Finance Minister Yanis Varoufakis expressed confidence on Wednesday that euro zone finance ministers would approve the Athens government’s proposal on Friday.

“The application will be written in such a way so that it will satisfy both the Greek side and the president of the Eurogroup,” he said.

Greece’s finances are in peril. It is burning through its cash reserves and could run out of money by the end of March without fresh funds, a person familiar with the figures said.

Likewise its banks are dependent on emergency funding controlled by the European Central Bank in order to pay out depositors who have been withdrawing their cash. The ECB agreed on Wednesday to raise a cap on funding available under its Emergency Liquidity Assistance scheme to 68.3 billion euros (US$78 billion), a person familiar with the ECB talks said.

That was a rise of just 3.3 billion euros, less than Greece had requested. The modest increase raises the pressure for a compromise at the Eurogroup. One senior banker said it would be enough to keep Greek banks afloat only for another week if present outflow trends persist.

Finance ministers of the 19-nation currency bloc rejected Greek proposals to avoid the bailout conditions at a meeting on Monday.

German Chancellor Angela Merkel made clear on Wednesday that Greece would have to give as well as take in negotiations.

“If countries are in trouble, we show solidarity,” she said in a speech to conservative supporters, naming Greece and other euro zone countries that had to take bailouts during the debt crisis. But she added, “Solidarity is not a one-way street. Solidarity and efforts by the countries themselves are two sides of the same coin. And this won’t change.” (Additional reporting by Renee Maltezou and Deepa Babington in Athens, Jan Strupczewski in Brussels, Gernot Heller, Michael Nienaber and Caroline Copley in Berlin, Jason Lange in Washington and Paul Carrel in Frankfurt; Writing by David Stamp and Deepa Babington; Editing by Peter Graff and Paul Taylor)

Politics & GovernmentBudget, Tax & Economyloan agreementGreek bailoutEuro zone […]

Greece to seek loan extension from sceptical euro zone

* Athens to use vital EU wording to request extension -newspaper

* Greek bailout deal due to expire on Feb. 28

* State faces running out of cash by late March – source

* ECB raises emergency funding for Greek banks only modestly (Adds Kathimerini report)

By Lefteris Papadimas and George Georgiopoulos

ATHENS, Feb 19 (Reuters) – Greece is expected to ask on Thursday for an extension to its euro zone loan agreement skirting tough bailout conditions to avoid running out of cash within weeks, but it must overcome resistance from sceptical partners led by Germany.

With the EU/IMF bailout programme due to expire in little more than a week, the government of leftist Prime Minister Alexis Tsipras urgently needs to secure a financial lifeline to keep the country afloat beyond late March.

Athens is expected to submit a request to extend the loan agreement for up to six months, boosting hopes for a last minute compromise to avert a Greek bankruptcy and exit from the euro zone. But Athens still rejects the austerity requirements that have been attached to the loans as part of the bailout package.

“We are doing everything to reach a mutually beneficial agreement. Our aim is to conclude this agreement soon,” government spokesman Gabriel Sakellaridis told Skai TV. “We are trying to find common points.”

Conservative daily Kathimerini said the government is expected to seek an extension to the so-called Master Financial Assistance Facility Agreement with the euro zone, under which aid is disbursed on condition that Athens fulfills bailout obligations. That could satisfy both sides as it would mean Athens can avoid saying “extension of the existing program” and the creditors can avoid using the term “loan agreement.”

EU paymaster Germany and fellow euro zone governments have insisted no loan deal without the full bailout is on the table, and Athens must seek an extension to the entire programme, which Tsipras promised to ditch when he was elected last month.

German Finance Minister Wolfgang Schaeuble has poured scorn on suggestions that Athens could negotiate an extension of euro zone funding without making any promises to push on with budget cuts and economic reforms.

But on Wednesday he indicated there may be some possibility of a compromise. “Our room for manoeuvre is limited,” he said during a debate in Berlin, adding, “We must keep in mind that we have a huge responsibility to keep Europe stable.”

Greek Finance Minister Yanis Varoufakis expressed confidence on Wednesday that euro zone finance ministers would approve the Athens government proposal in a teleconference on Friday.

“The application will be written in such a way so that it will satisfy both the Greek side and the president of the Eurogroup,” he said, referring to the head of the group of euro zone finance ministers.

FINANCES IN PERIL

Greece’s finances are in peril. It is burning through its cash reserves and could run out of money by the end of March without fresh funds, a person familiar with the figures said.

Athens had enough to repay a 1.5 billion euro instalment to the International Monetary Fund next month but would struggle to pay public sector salaries and pensions in April.

Likewise its banks are dependent on emergency funding controlled by the European Central Bank in order to pay out depositors who have been withdrawing their cash. The ECB agreed on Wednesday to raise a cap on funding available under its Emergency Liquidity Assistance scheme to 68.3 billion euros (US$78 billion), a person familiar with the ECB talks said.

That was a rise of just 3.3 billion euros, less than Greece had requested. The modest increase raises the pressure for a compromise at the Eurogroup. One senior banker said it would be enough to keep Greek banks afloat only for another week if present outflow trends persist.

The Frankfurter Allgemeine Zeitung (FAZ) – a conservative German newspaper that often takes a stance similar to Germany’s Bundesbank – said on Thursday the ECB would feel more comfortable if Greece introduced capital controls to stem the outflow from banks, citing central bank sources.

Finance ministers of the 19-nation currency bloc rejected Greek proposals to avoid the bailout conditions at a meeting on Monday. Whether they accept its new request as a basis to resume negotiations will depend on how it is formulated, an EU source said. The wording has to match EU legal texts to win approval in several euro zone parliaments.

Tsipras said on Wednesday talks were at a crucial stage and his demands for an end to austerity were winning backing.

In a sign of concern in Washington at the financial risks to a strategically located NATO ally, U.S. Treasury Secretary Jack Lew telephoned Varoufakis to urge Greece to strike a deal with the euro zone and IMF, warning that failure would lead to immediate hardship.

Lew said the United States would continue to prod all parties in the talks to make concrete progress, noting that uncertainty was “not good for Europe.”

The Athens government released documents indicating it was taking a more flexible line to placate euro zone creditors than its anti-bailout rhetoric at home has suggested. They showed Varoufakis had offered on Monday to accept some conditions on an extension to its loan agreement with a check-up by the European Commission at the end of the period.

German Chancellor Angela Merkel made clear on Wednesday that Greece would have to give as well as take in negotiations.

“If countries are in trouble, we show solidarity,” she said in a speech to conservative supporters, naming Greece and other euro zone countries that had to take bailouts during the debt crisis. But she added, “Solidarity is not a one-way street. Solidarity and efforts by the countries themselves are two sides of the same coin. And this won’t change.” (Additional reporting by Renee Maltezou and Deepa Babington in Athens, Jan Strupczewski in Brussels, Gernot Heller, Michael Nienaber and Caroline Copley in Berlin, Jason Lange in Washington and Paul Carrel in Frankfurt; Writing by David Stamp; Editing by Peter Graff and Paul Taylor)

Politics & GovernmentBudget, Tax & Economyloan agreement […]

Fitch Rates CSMC Trust Series 2014-11R

NEW YORK–(BUSINESS WIRE)–

Fitch Ratings assigns a rating to one group of CSMC Trust series 2014-11R, a U.S. RMBS resecuritization:

Group 17 Securities

–$5,373,000 class 17-A-1 ‘BBBsf’.

The Rating Outlook is Stable.

Fitch is not expected to rate the following classes:

–$1,632,800 subsequent exchangeable class 17-A-2;

–$816,000 initial exchangeable class 17-A-3;

–$816,800 initial exchangeable class 17-A-4.

CSMC 2014-11R is comprised of 17 groups. Fitch is rating one bond in one of the groups (Bond 17-A-1 in group 17). Each group is a resecuritization of an ownership interest in a residential mortgage-backed security. As a resecuritization, the securities will receive their cash-flow from the underlying security. The Fitch-rated group is collateralized with class A-2 from Deutsche Alt-A Securities Mortgage Loan Trust series 2007-RAMP1. While the mortgage pool has performed worse than initial expectations, performance has stabilized and improved in recent years.

Fitch’s stressed mortgage pool loss assumption in the ‘BBBsf’ rating scenario is approximately 50% of the underlying pool. Fitch assumes home prices decline 20% below their sustainable levels in a ‘BBBsf’ rating scenario. The principal balances of all subordinate classes of the underlying transaction have been entirely written down. However, the underlying class A-2 benefits from a sequential payment priority that effectively provides approximately 38% subordination for principal recovery in the underlying transaction. The new resecuritization class 17-A-1 benefits from additional credit support of 23.3% as a percentage of the A-2 class (approximately 14% as a percentage of the underlying pool balance).

Ocwen Loan Servicing (Ocwen) is a primary servicer of the underlying mortgage pool. Fitch recently placed Ocwen’s servicer rating on Rating Watch Negative due to concerns raised by the New York State Department of Financial Services (NY DFS). The NY DFS has alleged significant issues with Ocwen’s systems and processes, especially relating to borrower requests for mortgage loan modifications. Ocwen’s increased risk is mitigated by the presence of Wells Fargo Bank, N.A. (Wells Fargo; rated ‘RMS1’ by Fitch) as Master Servicer.

This transaction contains certain classes designated as Initial Exchangeable Securities and another as a Subsequent Exchangeable Securities.

For Group 17, classes 17-A-3 and 17-A-4 are Initial Exchangeable Securities and class 17-A-2 is a Subsequent Exchangeable Security. For the Fitch rated group, interest is paid pro-rata and principal is paid sequentially.

KEY RATING DRIVERS

Key rating drivers include the performance of the underlying pool as well as the collateral characteristics, such as sustainable loan-to-value ratio (sLTV), credit score and geographic concentration. For the Fitch rated group, Fitch ran various prepayment speeds and loss timing scenarios in its analysis of the deal structure. This analysis was done to determine that the cash flow to the senior bond rated by Fitch would not be exposed to losses as a result of potential alternative cash flow timing stress scenarios.

RATING SENSITIVITIES

Fitch analyzes each bond in a number of different scenarios to determine the likelihood of full principal recovery and timely interest. The scenario analysis incorporates various combinations of the following stressed assumptions: mortgage loss, loss timing, interest rates, prepayments, servicer advancing and loan modifications.

The analysis includes rating stress scenarios from ‘CCCsf’ to ‘AAAsf’. The ‘CCCsf’ scenario is intended to be the most likely base-case scenario. Rating scenarios above ‘CCCsf’ are increasingly more stressful and less likely outcomes. Although many variables are adjusted in the stress scenarios, the primary driver of the loss scenarios is the home price forecast assumption. In the ‘Bsf’ scenario, Fitch assumes home prices decline 10% below their long-term sustainable level. The home price decline assumption is increased by 5% at each higher rating category up to a 35% decline in the ‘AAAsf’ scenario.

The group-to-bond association for the Fitch-rated group is as follows: Group Seventeen represents a 14.29% interest in the Deutsche Alt-A Securities Mortgage Loan Trust series 2007-RAMP1, Class A-2. Fitch’s ‘BBBsf’ rating for class 17-A-1 reflects the credit risk of the underlying transaction and the additional subordination provided by the new resecuritization trust. The underlying collateral pool for Deutsche Alt-A Securities Mortgage Loan Trust series 2007-RAMP1, class A-2 consists of fixed-rate and hybrid ARM mortgage loans. As of Nov. 25, 2014, Fitch estimates the loans remaining in the underlying pool had an original weighted average (WAVG) credit score of 689, an estimated current combined loan-to-value of 98% and a sustainable loan-to-value of 102%. The top three state concentrations are New York (12%), Florida (11%) and New Jersey (9%). Approximately 36.5% of the remaining pool is delinquent.

For further information, see CSMC Series 2014-11R Representations and Warranties Appendix, published December 2nd, 2014.

Additional information is available at ‘www.fitchratings.com‘.

Applicable Criteria and Related Research:

–‘Global Structured Finance Rating Criteria’ (May 2014);

–‘U.S. RMBS Master Rating Criteria,’ (July 2014);

–‘U.S. RMBS Surveillance and Re-REMIC Criteria’ (June 2014);

–‘U.S. RMBS Loan Loss Model Criteria’ (November 2014);

–‘Counterparty Criteria for Structured Finance and Covered Bonds’ (May 2014);

–‘U.S. RMBS Cash Flow Analysis Criteria’ (April 2014);

–‘Criteria for Interest Rate Stresses in Structured Finance Transactions and Covered Bonds’ (January 2014);

–‘Rating Criteria for US Residential and Small Balance Commercial Mortgage Servicers’ (January 2014).

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=961875

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New Offers from Upromise by Sallie Mae Means More Opportunities to Earn Cash Back for College This Holiday Season

NEWARK, Del.–(BUSINESS WIRE)–

With the holiday shopping season in full force, now’s the time for families to earn even more cash back for college through Upromise by Sallie Mae. Every Tuesday through Dec. 23 is “10 Percent Tuesday”, where Upromise members can earn 10 percent cash back for college with featured partners including: Sephora, Shoebuy.com, Fossil, Lord & Taylor and QVC.com. A full list of participating retailers is available on Upromise.com. Last holiday season Upromise members earned a collective $14 million towards college savings.

This holiday season, Upromise offers even more ways to save for college. Those who shop using the Upromise World MasterCard can earn an extra 5 percent cash back for a total of 10 percent at most partners on online purchases on Black Friday, Cyber Monday, and every other day of the year. Also, on Nov. 26, Upromise will feature a free shipping day, aggregating dozens of partners’ free shipping offerings in one place for members.

Additionally, Upromise is launching personalized in-store offers for members who have a Upromise World MasterCard registered to their Upromise account. Members will see a list of in-store offers at nearby retailers and restaurants online, and the percentage cash back at each partner.

“Many families try to strike a balance between their budget and things like college savings goals, and the holidays can put stress on that balance,” said Erin Condon, vice president, Upromise by Sallie Mae. “With Upromise, families can purchase their holiday gifts with peace of mind that they’re also putting away a little bit more for college.”

Grandparents, friends, and other family can link their shopping to a Upromise account to contribute money for college for that child or children. In fact, Upromise members with friends and family who contribute to their account earn 3 times more college savings on average.

Free and easy to join, Upromise by Sallie Mae allows families to earn cash back for college from everyday purchases by shopping online with partners such as Groupon, Macys.com, WalMart.com and BestBuy.com. Through Upromise, shoppers earn real cash rewards that can be put towards saving and paying for college including repayment of an eligible student loan, a Sallie Mae high-yield savings account, eligible 529 college savings plans or even cash back in the form of a check.

To date, Upromise members have collectively earned more than $850 million. To learn more, visit Upromise.com.

Sallie Mae (NASDAQ: SLM) is the nation’s saving, planning, and paying for college company. Whether college is a long way off or just around the corner, Sallie Mae offers products that promote responsible personal finance including private education loans, Upromise rewards, scholarship search, college financial planning tools, insurance, and online retail banking. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.

Sallie MaeUpromise Contact:

Sallie Mae

Abigail Harper, 302-451-0230

abigail.harper@salliemae.com […]

What it takes to borrow against home equity

Home Equity What It Takes To Borrow From Home Equity

Breaking into the home equity nest egg is becoming a very real possibility for more Americans as home prices rise. But raiding the house bank is not as easy as it was before the recession, and not everyone meets the requirements to borrow from home equity.

Consumers must have a trifecta of enough equity, a high credit score and a healthy relationship between their debt and income to take money out of their house via a cash-out refinance, home equity loan or home equity line of credit, also called a HELOC.

Home equity loan

A second mortgage for a fixed amount, at a fixed interest rate, to be repaid over a set period.

Home equity line of credit (HELOC)

A second mortgage with a revolving balance, like a credit card, with an interest rate that varies with the prime rate. Pronounced HE-lock.

Cash-out refinance

A mortgage refinance for more than the amount owed. The borrower takes the difference in cash. Also called a cash-out refi.

“The standards were already fairly tight, but now with a lower volume of refis being done, you have more people looking at every file,” says Paul Anastos, president of Mortgage Master Inc. “There’s more scrutiny from banks and the agencies.”

You can extract equity in multiple ways

Some banks remain hesitant to offer equity lines of credit to homeowners. Lenders also must follow stricter mortgage rules that went into effect this year about a consumer’s ability to repay the debt.

Some lenders offer HELOCs as well as home equity loans and cash-out refinances.

“I have only one lender, U.S. Bank, that does HELOCs, but they must have the first mortgage,” says John Stearns, a senior mortgage banker with American Fidelity Mortgage in Milwaukee. “As for cash-out refis, I do those every once in awhile and am doing one now.”

Stearns said the borrower is taking out $50,000 in home equity. After the loan closes, the borrower will still have a 40 percent stake in the property. That translates to a healthy 60 percent loan-to-value ratio, or LTV — a figure that reflects how much debt remains on the property. The lower the ratio, the better.

You need lots of equity to borrow from it

Home prices rose year over year for the 22nd straight month in March, according to the SandP/Case-Shiller index of home prices. That run helped 4 million mortgaged properties regain equity in 2013 and boosted Americans’ overall stakes in their homes to over 50 percent for the first time in six years.

Still, lenders require a hefty amount of equity before homeowners can borrow against their home. In general, a homeowner cashing out into a fixed-rate mortgage must have at least 15 percent equity left over, or a loan-to-value ratio of 85 percent, according to rules spelled out by Fannie Mae and Freddie Mac, which guarantee the majority of U.S. home loans.

If the homeowner chooses an adjustable-rate mortgage when cashing out, then the maximum LTV is 75 percent. The LTV requirements for cash-out refis differ even more if the home is a second house, an investment property, a mobile home or a multiple-unit dwelling.

For HELOCs, lenders generally want the LTV to be 80 percent or less, says Pava Leyrer, manager of training and implementation for Northern Mortgage Services in Grand Rapids, Michigan.

“The reason why most want to keep that 20-percent stake is because it will cover the cost to take back the property in foreclosure and turn around and sell it,” Leyrer says.

Lenders scrutinize total debt payments

LTV is not the only key percentage to tap home equity. The ratio between a consumer’s total debt and income is also part of the qualification equation. And again, the lower the percentage, the better. The magic number, according to Fannie Mae and Freddie Mac, is 45 percent.

Lenders will add up the total monthly payment for the house, which includes principal, interest, taxes, homeowners insurance, direct liens and home association dues along with any other outstanding debt that is a legal liability. That can include child support, installment loans, credit card bills, IRS payments and even student loans that are not yet being repaid, Leyrer says.

That total debt is divided by a borrower’s gross monthly income, which is comprised of base salary, commissions, bonuses and any other income such as rental income or on-time, up-to-date spousal support.

“Lenders want to see if after making your monthly debt payments, is there any money left over at the end of the month,” says Dave Norris, president and chief operating officer of loanDepot.com.

And then there’s the credit score

Even if a borrower’s income shows ability to repay the loan, that doesn’t mean the borrower will, Norris says. That’s where a borrower’s credit score comes in. For HELOCs, Leyrer says most borrowers with a credit score between 660 and 680 will probably qualify, but a score of 700 is “more of a shoo-in.”

For cash-out refis, generally, the lowest credit score on a home that the borrower lives in is 640, according to Fannie Mae’s standards. But such a loan comes with caveats. The borrower can’t have an LTV ratio higher than 75 percent, must have six months of reserves in the bank and a debt-to-income ratio of 36 percent or lower. Those stipulations disappear as the credit score, LTV or debt to income improves.

Requirements for cash-out refinance on primary home

36% or lessmore than 75%680n/a36% or less75% or less660n/a36% or lessmore than 75%660636% or less75% or less640645% or lessmore than 75%700n/a45% or less75% or less680n/a45% or lessmore than 75%680245% or less75% or less6602

Source: Fannie Mae

“They all play off one another,” says Norris. “You would also get a better interest rate as each factor improves.”

More From Bankrate.com

3 ways to cash out equity
HELOCs offer fixed rate
Home equity loans return
LoansFinancials Industrycredit scorehome equity loan […]

Shopping center getting final touches; will house Dunkin Donuts, Orange Leaf Yogurt and Speedy Cash loan store

Workers are in the final stage of construction of a new shopping center on McFarland Boulevard on Wednesday. Three businesses in the shopping center are expected to open this summer.

Staff photo | Erin Nelson

Published: Sunday, May 25, 2014 at 11:00 p.m.
Last Modified: Sunday, May 25, 2014 at 11:34 p.m.

The finishing touches are being made to a new shopping center on McFarland Boulevard that will be home to a Dunkin Donuts, Orange Leaf Yogurt and a Speedy Cash loan store.

Those businesses should be ready to open this summer, said Patrick Agee of Advantage Realty, the leasing agent for the shopping center located at the corner of McFarland and James I. Harrison Jr. Parkway.

The $2.5 million to

$3 million shopping center, which is across the road from the Master Inn motel on McFarland, has about 45,000 square feet of additional space available to lease. That space would be suitable for two to three additional businesses, such as restaurants or retail shops, Agee said.

Once a business signs a lease, it will hire a company to do the finishing work on the interior and install desired fixtures, Agee said.

Much of that work now is already done by the three companies that will open soon.

The Dunkin Donuts shop will be on the north end of the shopping center and will be the first such doughnut shop on the south end of town, Agee said. Its proximity to Interstate 20/59 should make it attractive to motorists passing through the area as well as nearby residents, he said.

It also is part of an ongoing expansion by the doughnut shop chain in the Tuscaloosa market. Dunkin Donuts opened its first shop here in 2012 in the Lakeside Dining Hall on the University of Alabama campus, and last year it opened a shop on the site of the old Greyhound Bus Station on Stillman Boulevard.

Dunkin Donuts also has plans for two additional shops — one at 15th Street and Dr. Edward Hillard Drive and the other at the Hillcrest Shopping Center on Alabama Highway 69 South, Agee said.

The Orange Leaf Yogurt shop will be the company’s second location in the Tuscaloosa market. It now has a store on Jack Warner Parkway.

The shopping center is owned by Crescent LLC. The Alabama Secretary of State Office lists Robert and Anne Monford of Tuscaloosa as the principal owners of Crescent LLC.

[…]

New York – NY Gets Visa, MasterCard To Halt Debit-Based Payday …

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New York – New York’s financial regulators are working with Visa and MasterCard to stop illegal payday loans through debit card transactions.

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The Department of Financial Services says they’ve reached agreement with Visa and MasterCard to provide information to card companies about payday lenders that are using debit cards to circumvent New York laws to recover loans.

Benjamin Lawsky, the department’s superintendent, sent 20 cease-and-desists letters to payday lenders accused of making or collecting payday loans from New Yorkers. Of the 20, Lawsky says, 12 appear to be using the debit card tactic.

Visa and MasterCard will work with DFS to stop processing illegal payday loans collected from New Yorkers or made in New York.

More of today’s headlines

“Jerusalem – Israeli Prime Minister Benjamin Netanyahu said on Thursday he would seek a new law declaring Israel a Jewish state, striking back against a Palestinian…”“Yonkers, NY – Metro-North is running trains at slow speeds in the area of a mudslide in Yonkers for the morning rush. Heavy rains Thursday knocked out a pair of…” […]

State Taking Action to Stop Illegal Online Payday Lending – NY1

The state is taking action to stop illegal online payday lending.

The loans are similar to cash advances on credit lines, but they’re based on pending paychecks and are illegal in New York.

Now, the Department of Financial Services is working with MasterCard and Visa to stop lenders from deducting funds from people’s bank accounts via debit transactions to pay off the loans.

The department also sent cease and desist letters to 20 companies identified as illegally promoting, making or collecting on payday loans.

[…]