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ABN AMRO has priced the first deal in its Uropa Securities series, a £615 million ($1.26 billion) securitization of 4,800 U.K. non-conforming residential mortgages.

ABN Amro priced its debut securitisation of UK non-conforming mortgages this week, amid turmoil from Moody’s and S&P’s warnings on US subprime ABS and CDOs.

Tighter restrictions on subprime mortgage lending being proposed in the U.S. are unlikely to appear in the U.K., reports MortgageSolutions.com. “There are a number of differences between our market and that of the U.S., especially with regard to products on offer and the regulations in place,” said Alex Hammond, public relations manager of Kensington Mortgages. “We have a stricter framework for lenders to operate in.”

The sale of Kensington Mortgages to Investec for £283m marks the end game in the story of an amazing business.

Despite the continuing chaos in the US subprime mortgage market, some degree of order seemed to return to the UK non-conforming RMBS sector this week.

Over the last several years, a number of lenders have entered the specialized lender segment, focusing on subprime mortgages in the U.K.

Brewin Dolphin raised £190m for domestic energy efficiency company Eaga this week.

o you also feel that the subprime mortgage crisis is beginning to ebb? Just two months ago, you had only to mention subprime and people looked at you as if you had caught the plague.

The 12-year career of Kensington Group as the leading independent lender and securitiser in the UK subprime mortgage market neared its conclusion this week, when the London-listed company accepted a £283m bid from Investec Bank.

Specialist banking group Investec is moving further into the securitization market with the buyout of U.K.-based sub-prime mortgage lender Kensington, an offer which the lender’s board is unanimously recommending to its shareholders.

Mortgage lender Kensington said that it was in advanced takeover talks with an offer likely to come in below the previous day’s closing price of 560.5 pence ($11.14).By 1346 GMT, shares in the specialist lender were down 6.6% to 523.5 pence ($10.41), its lowest level since July 2005, valuing the group at around 275 million pounds. ($543.3 million). The shares had been trading up almost 11%. "There can be no certainty that any such offer will be made but in the event that one is made it is likely to value the group at a price below yesterday's closing share price," it said in a statement.Kensington has said it is reviewing its strategic options and it confirmed in April that it was in early takeover talks with unnamed parties. Kensington, which provides mortgages to the self-employed, older-borrowers and people with poor credit histories, declined to name its suitor on Wednesday. Analysts have speculated a large investment bank building an integrated mortgage securitization model could be quick to snap up the firm. Meanwhile, British lender Paragon said on Tuesday it was not interested.Kensington told the market in February its outlook for 2007 profit remained uncertain, after a competitive first quarter.

Jonny.Fine@gs.com What? You scumbag — how could you?