Servicing

The New York Supreme Court late Monday denied Countrywide and Bank of America's motion to consolidate various claims against them made by four bond insurers led by MBIA Insurance Corp.

Moody's Investors Service has extended the review period for a possible downgrade of $871 million of outstanding bonds sold by the Idaho Housing and Finance Association while the issuer works on a plan to shore up its balance sheet.

The refinance boom of the third quarter both helped and hurt earnings at PHH Corp., Mt. Laurel, N.J. The company reported a net loss of $148 million during the period due to a $361 million write-down of mortgage servicing rights values.

The government owned Ally Financial posted a $210 million loss in the third quarter, dragged down by a $471 million pre-tax charge tied to its mortgage servicing rights.

States that rely on judicial foreclosures to clear delinquent loans are swamped with large inventories of problem homes with the overall process taking six months longer than in non-judicial states, according to a new report from Lender Processing Services, Jacksonville, Fla.

Annaly Capital Management, the nation's largest mortgage investing REIT, posted a $922 million net loss in the third quarter, citing a flattening yield curve and faster prepayment speeds.

While new CMBS issuance is likely to continue trailing off as of Tuesday afternoon there was still at least one deal in the works and there were signs of continued investor demand for it despite broader market concerns.

Many U.S. banks are eliminating or reducing high-risk assets, including real estate and mortgage backed assets that require more capital in preparation for the new Basel III recommendations that phase into effect by 2019. This shift is generating pressure on pricing policies and procedures.

The benchmark 10-year Treasury yield Tuesday morning dropped more than 20 basis points and the Dow fell close to 300 points, putting downward pressure on industry stocks and mortgage rates.

There were 58,019 single-family homes sold in Texas during the third quarter, up 18% over the same period last year, the Texas Quarterly Housing Report said. Volume, one economist noted, has returned to levels last seen eight and nine years ago, when the markets acted in a more normal fashion.