Servicing

Bank of America Corp. chief executive Brian Moynihan promised investors he would save $5 billion in costs by 2013, but was otherwise scarce on details during a much-anticipated speech on Monday.

Specialty mortgage servicer Wingspan Portfolio Advisors says it is further expanding into new residential-related sectors, including technology and insurance.

Demand for Federal Housing Administration single-family loans slowed in July with residential lenders originating just $16 billion of government-backed product.

Chicago's City Council published an ordinance late last week that would require banks, mortgage servicers and institutional investors to maintain vacant properties before the homes have gone through foreclosure.

In Aug. 3 testimony before the Senate Banking Committee, Thomas Hamilton, speaking on behalf of the Securities Industry and Financial Markets Association, stated that possible steps to take to solve the issues currently affecting our mortgage finance system could include the government limiting the amount of borrowing that banks can do from the Federal Home Loan Banks, and developing a market for covered bonds in the United States.

Identifying potential buybacks can be particularly challenging when refinancing application volume picks up as it did recently when rates dropped notably during a volatile period in the market.

Military Housing Privatization Initiative bond financings could be negatively affected by budget cuts expected to hit the Department of Defense, according to Moody's Investors Service.

The Federal Housing Finance Agency is looking at raising the 125% LTV cap on refinancing underwater borrowers while considering other enhancements to the Home Affordable Refinancing Program, according to agency acting director Edward DeMarco.

Obama Administration officials have identified several constraints on the HARP program -- including mortgage buyback risk -- that are keeping Fannie Mae and Freddie Mac seller/servicers from refinancing underwater borrowers.

Morgan Stanley & Co. this week took bids on its residential servicing division, Saxon Mortgage, Ft. Worth, Texas, which holds $28 billion of contracts on its books, according to M&A officials.