Servicing

In a Federal Deposit Insurance Corp. statement released today on the legislative proposals to create a U.S. covered bond market, the agency said that it has "significant concerns" regarding the United States Covered Bond Act of 2011 (H.R. 290).

The recent earthquake in Japan may have damaged some coastal areas of Hawaii and California, including some Hawaiian hotel real estate securing commercial mortgage-backed securities loans.

Reverse mortgages apparently have drawn more interest as a possible way to mitigate recently heightened prepayment risk in competing investments. But with some HUD issues in litigation, FHA commissioner David Stevens resigning (albeit likely for unrelated reasons) and the recent departure of Wells Fargo from the wholesale channel, there are some other aspects of them that call for close monitoring and, in some cases, resolution.

Australian RMBS issuer Perpetual is in the market with SMHL Securitisation Fund 2011-1 worth A$600 million.

Far more than any trader's profane e-mails, due diligence reports from the securitization boom could worsen the financial industry's litigation headaches — and conceivably expose some firms and individuals to criminal charges.

Many believe the government went overboard by setting unrealistic goals, a move that could backfire and give banks more leverage to fight some of the most onerous requirements.

The Federal Trade Commission is suing a national operation with marketing false loan modification services targeting homeowners who are behind in their mortgage payments or facing foreclosure.

The Federal Housing Finance Agency has extended a special program for one year so more borrowers can refinance and lower their mortgage payments.

Among the tools top banks have been using to identify potential buybacks are ones that check original employment and income information at the point of loan funding.

Mortgage firms issued $26.2 billion of Government National Mortgage Association-backed bonds in February, a 25% decline from the prior month, and a sign that higher rates are impacting loan volumes.