Servicing

Fannie Mae issued $34.5 billion of mortgage-backed securities in April, a 36% plunge from the prior month, according to figures released by the GSE Friday morning. In April its MBS issuance rose 4.2%.

Bank of America Corp. will pay $20 million and Morgan Stanley $2.35 million for improperly foreclosing on members of the military — some of whom were on active duty in Iraq and Afghanistan — under a settlement with the Justice Department.

Thrift institutions originated $26.5 billion of single-family loans in the first quarter, down 37% from the prior period, according to figures compiled by the Office of Thrift Supervision.

A significant sector of the housing market is still being driven by sales of bank-owned homes and those in some stage of foreclosure, according to a new report from Realtytrac Inc.

The attorneys general of California and Illinois issued subpoenas to two mortgage servicing vendors seeking information about their role in alleged mishandling of foreclosure and other mortgage documents.

Lenders and servicers can expect to lose $375 million in 2011 due to "suspicious" short sales where the buyers resell the properties within six months at a sizable profit, according to a new report by CoreLogic.

MERS looks like it will prevail when it comes to questions about the validity of assignments where it is involved, but some think it may "lock down" its procedures as a result of the concerns.

Origination software provider Ellie Mae released a package of new services and features this week to promote loan quality and efficiency in the loan file review process for investors and loan aggregators.

Clayton Holdings LLC, Shelton, Conn., has hired Rick E. Smith as senior managing director in business development for its Quantum residential and commercial special servicing business, based in the company's Tampa office.

Although Congress and the White House are betting that in time the private sector will fill the void created by a diminished Fannie Mae and Freddie Mac, a new report from Standard & Poor's predicts that any recovery in the private label market is still years away.