Sector developments and company hires

QM final rules revisit mulled
The CFPB is considering whether to initiate a rulemaking to revisit the Seasoned QM Final Rule. If the bureau decides to do so, it expects that it will consider in that rulemaking whether any potential final rule revoking or amending the Seasoned QM Final Rule should affect covered transactions for which an application was received during the period from 1 March 2021, until the effective date of such a final rule.

The bureau also expects to issue shortly a proposed rule that would delay the 1 July 2021 mandatory compliance date of the General QM Final Rule. If such a proposed rule were finalised, creditors would be able to use either the current General QM loan definition or the revised General QM loan definition for applications received during the period from 1 March 2021, until the delayed mandatory compliance date.

Furthermore, the bureau anticipates that the Temporary GSE QM loan definition will remain in effect until the new mandatory compliance date, in accordance with the 20 October 2020 final rule, except that the Temporary GSE QM loan definition would expire with respect to a GSE, if that GSE ceases to operate under conservatorship prior to the new mandatory compliance date.

In other news…

Global
Aon has hired Marcus Foley to the Bermuda operations of Reinsurance Solutions, subject to Bermuda immigration approval, and Tim Radford to its London capital advisory team within Reinsurance Solutions. Foley will join the firm as head of capital management, reporting to Tony Fox, chairman and ceo, Bermuda, and Eric Paire, head of London capital advisory of Reinsurance Solutions. Foley joins from Aspen, where he was most recently group chief capital management and strategy officer.

Radford will support the team’s capabilities in Lloyd’s capital optimisation and funds at Lloyd’s (FAL) provision, reporting to James Mackay, head of Lloyd’s relationships within London Capital Advisory. Radford joins from Securis Investment Partners, where he was involved in the origination, analysis and structuring of all forms of non-life investments, as well as capital raising – focusing in particular on the provision of FAL to Lloyd’s syndicates.

North America
Teresa Bryce Bazemore, an independent member of the Chimera Investment Corporation board, has notified the company that she will resign effective as of 28 February. The move is in consideration of her additional duties in connection with her recent appointment as the president and ceo of the Federal Home Loan Bank of San Francisco.

NPL ABS fund launched
Polis Fondi has launched an Italian multi-compartment closed-end mutual fund, with the aim of investing €2.5bn GBV in non-performing and unlikely-to-pay loans. Dubbed Taurus, the fund will subscribe to notes issued by NPE securitisations.

Cerved Credit Management (CCM) will act as master and special servicer in the context of securitisation. The fund will have two compartments: the first will invest in notes with underlying NPL exposures and the second in notes with underlying UTP exposures, mainly of SMEs.

Repack JV inked
OptiAssets and Privatam have formed a joint venture designed to allow asset and wealth managers better access to securitisation services and securitised assets. The new partnership aims to leverage the combination of OptiAssets’ securitisation and asset repack platform and Privatam’s technology and expertise to unlock scale, as well as provide greater flexibility and cost-efficient investment vehicles to investors.

Spanish CMBS preplaced
Bank of America has preplaced another European CMBS, following significant demand for its UK last-mile logistics transaction (SCI 23 February). The latest deal - dubbed Taurus 2021-2 SP and sponsored by Starwood Capital - is backed by a €139.9m portion of a €269.9m limited recourse, first lien mortgage financing.

According to KBRA, the loan was first utilised in September 2019 and has a three-year initial term, with two one-year extension options. The loan is secured by the borrower’s interests in eight office assets in Spain, marking the first fully Spanish CMBS since the financial crisis.

Six of the assets - accounting for 83.1% of the allocated loan amount - are located in Madrid and the remaining two assets are located in Barcelona. The properties are leased to 171 individual tenants, of which the largest represents 10.1% of gross rental income and the top 10 represent 49.7%. The tenants comprise a variety of multinational, regional and local firms.