Company hires and sector developments

Clifden wind up

A winding-up order has been issued by the High Court of Justice of the Isle of Man, Chancery Division in respect of Clifden IOM No.1 and PricewaterhouseCoopers has been appointed official receiver of the firm. The move follows a Part 8 claim issued by Clifden, naming RMAC No. 1 series 2006-NS1, 2006-NS2, 2006-NS3, 2006-NS4 and 2007-NS1 as defendents. The issuers and PwC have agreed to adjourn the hearing in respect of the claim, which was to be held on 19 July, until a date after 1 October.

Consumer ABS warehouse extended

Zip Co, an Australian non-bank lender, has extended its securitisation warehouse programme and offered existing Class B noteholders an option to exchange on a one-for-one basis into $60m of new Class B notes in the warehouse which also provides the option to refinance the facility through the rated securitisation market.  The extension of the program provides Zip with the flexibility to maintain growth and head towards its medium term goal of establishing a rated trust which will further diversify funding, provide headroom for growth and will lower its average cost of funds.

RFC on GSE patch

The CFPB has issued an advance notice of proposed rulemaking (ANPR) seeking information relating to the expiration of the temporary qualified mortgage provision applicable to mortgage loans eligible for purchase or guarantee by Fannie Mae and Freddie Mac (also known as the GSE patch), which is scheduled to expire on 10 January 2021. The ANPR states that the bureau plans to allow the GSE patch to expire in January 2021 (or after a short extension, if necessary, to facilitate a smooth and orderly transition away from the GSE patch) and it seeks comments on possible amendments to the ATR/QM rule, including whether to revise Regulation Z’s definition of a qualified mortgage and introduce an alternative method for assessing financial capacity. The CFPB says its aim is to facilitate a more transparent, level playing field that “ultimately benefits consumers through stronger consumer protection”. A bureau assessment of its ATR/QM rule found that GSE QM loans represent a “large and persistent” share of originations in the conforming mortgage market and that creditors generally offered a temporary GSE QM loan, even when a general QM loan could be originated.