Finance

Proposals in Congress to change the structure of the government-sponsored enterprises Fannie Mae and Freddie Mac seem to be languishing in this election year.

Rep. John Delaney said Tuesday that he's "optimistic" Congress could take up reform of Fannie Mae and Freddie Mac next term, despite the political difficulties lawmakers have faced in getting legislation approved over the past two years.

Garry Cipponeri, the head of capital markets for JPMorgan Chase & Co.'s U.S. mortgage unit, is leaving the bank to start a new company, according to two people with knowledge of the move.

All the mistakes and errors in a loan file should be dealt with prior to the mortgage funding.

A regulatory mechanism designed to support unsolicited ratings includes obligations that complicate its use. Post-crisis single-family securitization sectors like the new rental market are instead drawing "unsolicited comments."

Nonagency mortgage securitization has fallen well short of forecasts this year, as commercial banks bid up for loans to put on their balance sheets. But the fourth quarter could offer this moribund market a chance at redemption.

The pricing of the class-A notes paralleled that seen in a recent first-time issuer's single-family rental securitization in August, but the pricing for the rest of the capital structure differed.

Mortgage insurers agree that the FHFA's capital-retention proposal would offer more clarity than the existing regulatory framework, but they share concerns about the treatment of single-premium policies, risk requirements and other details.

Essent Guaranty in Radnor, Pa., is now an approved insurer of mortgage loans sold to Federal Home Loan Banks.

HF2 Financial Management in Denver is acquiring a majority equity interest in ZAIS Group, a specialty investment management firm.

Fannie Mae and Freddie Mac are charging excessive loan fees, according to some industry groups, who claim it is time to stop overcharging borrowers who use conventional financing to buy a home.

Post-crisis developments put a lot of underperforming loans in the hands of a small number of servicers. Increased regulation and the need for specialized skills drove banks out of the business.

In his first major policy speech as the new housing secretary, Julian Castro voiced support for a Senate bill to reform housing finance and said policymakers should "remove the stigma associated with promoting homeownership."

The Federal Housing Finance Agency's plan to restrict membership to the Federal Home Loan Bank System could cost lenders hundreds of billions in mortgage funding, according to the CEO of the Chicago FHLB.

Mortgage REIT wants more control over servicing so it can transfer delinquent loans to special servicers.

Rialto Capital is in the market with $147 million of bonds backed by nonperforming commercial and residential mortgages, according to a presale report published by Kroll Bond Rating Agency.

Legacy mortgage insurers welcome the level playing field that will come with a recent capital retention proposal, even though the new requirements will have a greater impact on firms that have larger volumes of insurance on high-risk loans.

The U.S. Treasury is seeking to stoke issuance in the mortgage-bond market by pushing credit-rating firms to offer more information on how they might grade securities tied to riskier loans.

Despite regulatory constraints on servicing transfers that affect large players, increased compliance costs and capital ratio requirements are a bigger burden for smaller servicers to bear.

HSBC Holdings Plc will pay $550 million to resolve accusations of misconduct in its handling of mortgage securities that saddled taxpayers with losses after the financial crisis.