Bondholders hope Countrywide settlement will pay up
Could award $8.5 billion in recoveries to affected bonds
Bondholders and investors are reviewing the recently approved Countrywide settlement that could potentially distribute $8.5 billion in recoveries to affected bonds, a recent report on the U.S. ABS market from Markit said.
While much of the recovery is already priced in to the market, holders still do not have a definite timetable and a plan to appeal the ruling since it is already in motion.
This follows a recent announcement from Ocwen that it plans to provide further loan servicing advances based on changes made to their home pricing model.
The changes will increase the number of homes with potential positive equity, allowing for more loans to qualify for advances of principal and interest.
So far, the February, non-agency residential mortgage-backed securities market has shown positive activity, even after the abundance of supply earlier in the month.