Servicing

The National Credit Union Administration late Monday filed its third lawsuit alleging violations of federal and state laws related to misrepresentations in the sale of MBS to now defunct corporate credit unions.

Wells Fargo & Co., the nation's largest residential originator, funded $64 billion of new home loans in the second quarter, a 31% decline from 1Q and a sign that mortgage bankers are in for some tough sledding in the months ahead.

While the future of Fannie Mae and Freddie Mac remains uncertain, there are a number of things the two are doing to improve their operations and financial soundness, according to Patrick Lawler, chief economist and associate director of the Federal Housing Finance Agency.

Bank of America is actively selling mortgage servicing rights and becoming more selective in placing MSRs on its books, company officials said Tuesday morning.

The residential finance division of Bank of America posted a stunning loss of $13 billion in the second quarter as delinquent mortgages, expected legal settlements and charges tied to 'reps and warranties' on loans sold into the secondary market hammered its performance.

If the economy remains sluggish and credit conditions remain tight, the homeownership rate could fall another one to two percentage points, according to a study funded by the Mortgage Bankers Association.

One Reverse Mortgage LLC, San Diego, has gotten the go-ahead from Ginnie Mae to securitize Federal Housing Administration Home Equity Conversion Mortgages.

FBR Capital Markets has initiated coverage of Walter Investment Management Corp., which is in the special servicing business, giving the company an "outperform" rating after it closed on its acquisition of Green Tree Credit Solutions LLC.

Default Resource has been selected to manage the REO disposition for United Bank, Barnesville, Ga.

California Governor Jerry Brown has signed SB 458 into law, preventing holders of second mortgages from pursuing a deficiency judgment on a borrower for unpaid debt after a short sale.