Insights and News

Oakleaf Offers New RMBS Investor Notice Monitoring Service

July 16, 2022

The Oakleaf Group is pleased to announce the introduction of a new service for tracking investor notices for US private-label Residential Mortgage-Backed Security (RMBS) transactions.

To aid portfolio surveillance efforts for our clients, Oakleaf collects and analyzes investor notices on public RMBS transactions. Oakleaf will provide a weekly investor notice monitoring report to investors who provide their holdings (CUSIPs or Deal names), which will include the investor notices issued that week plus Oakleaf’s analysis of the importance and urgency of each notice. 

Oakleaf’s Investor Notice Monitoring Service

Oakleaf can also monitor notices for private RMBS on a portfolio basis upon request.

While some notices are administrative in nature (i.e., annual servicer compliance certifications), others are material to the waterfall calculation or payment priorities such as potential or pending litigation, trust instruction proceedings (TIPs), servicing transfers, and optional calls/terminations.  

For example, nine of the 1,800 notices compiled by Oakleaf in Q4 in 2021 consisted of TIPS (TIPs are petitions filed by trustees seeking judicial guidance on document ambiguities or conflicting direction.) Outcomes of TIP petitions can impact the broader U.S. RMBS market, and materially impact cash flow distributions and payment priorities. Yet, during this same period, 1,000 standardized LIBOR transition notices were also compiled. Oakleaf’s service helps investors to more easily identify and sort through the high impact notices from standardized notices.

Monitoring investor notices requires frequent checking of trustee websites, which often use obsolete technology and are challenging to navigate. Locating the notices is a cumbersome process and sorting through them for material information demands time and resources especially for holders of large RMBS portfolios. Oftentimes, the Depository Trust Company (DTC) is the holder of record who forwards the notices to custodians, which may not be delivered to account holders.

Oakleaf’s latest service provides introduces a low-cost solution for bringing critical information directly to investors on a weekly basis. Investors who lack access to a platform to monitor and distil these notifications can greatly benefit from Oakleaf’s investor notice and assessment service. For more information on our investor notice monitoring service, please contact Suzanne Mistretta.

 

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