Servicing

Jumbo securitization’s full-fledged return may still be a question mark but some investment banks have already invested in technology to support it, according to one executive at an automation vendor.

HomeStreet Inc., the Seattle-based holding company for a savings bank focused on single-family mortgage originations, has further extended tender offers for all of its outstanding trust preferred securities until late February.

Major servicers initiated nearly twice as many home retention actions in the third quarter than actual foreclosures but they expect foreclosures will continue to rise in the coming quarters, according to an Office the Comptroller of the Currency and Office of Thrift Supervision report.

The Financial Industry Regulatory Authority has expelled APS Financial Corp., Austin, Texas, and barred its former president and its former broker from the industry in connection with an alleged scheme involving an elderly investor and markups on collateralized mortgage obligations as well as other types of securities.

A.M. Best has slightly downgraded the financial strength rating and the issuer credit rating of National Title Insurance of NY Inc., noting that NTINY’s surplus—while positive—has not kept pace with its business growth.

Allstate Insurance Co. has sued Bank of America to recoup losses suffered from its purchase of over $700 million in Countrywide-issued mortgage-backed securities.

Ally Financial Inc. has agreed to pay Fannie Mae $462 million to settle repurchase demands for breaches of representations and warranties related to whole loans and private-label securities the lender sold the GSE.

FBR Capital Markets, a 21-year-old investment bank hobbled during the financial crisis by a bloated cost structure and ties to a mortgage REIT, seems to be making all of the right moves. But it is still waiting for them to pay off.

In recent months, servicing failures have led to executive mea culpas, Washington drubbings and a 50-state investigation of the country’s biggest banks. As unpleasant as all of those things were, they have only dented large servicers’ profitability.

The recent whipsaw action in rates that hit some players has helped validate the need for proper hedging.“It validates the need for a disciplined hedging policy throughout the industry,” said Bill Sias, a managing director at MountainView Securities who works in the pipeline hedging area.