Servicing

The National Credit Union Administration is exploring legal remedies against firms that sold faulty mortgage backed securities that later played a key role in the failure of a handful of corporate CUs.

Freddie Mac is creating a new securitization option for lenders that originate "jumbo/super conforming" fixed-rate mortgages that have a maximum loan limit of up to $729,750.

Berkadia Commercial Mortgage is adding a fixed-rate loan for inclusion in new commercial mortgage-backed securities to the products offered through its national mortgage banking network.

The "shadow" inventory of homes that could reach market increased to 2.1 million units in August, an 11% jump from the same period a year ago, according to new figures provided by CoreLogic, Santa Ana.

Mortgage REIT PennyMac Investment Trust has inked a deal to sell $100 million of stock through Cantor Fitzgerald when it needs to raise equity.

Fannie Mae is auctioning off a $30 million pool of bulk real estate-owned properties, according to investors who have viewed the offering circular.

A new report on the failure of WesCorp Federal Credit Union concludes that the one-time $32 billion corporate CU had too much of its investments tied to a single real estate market — its home state of California — and one issuer, Countrywide.

Countrywide, the mortgage giant that's now part of Bank of America, routinely didn't bother to transfer essential documents for loans sold to investors, an employee testified.

Put-backs of defective mortgages are accelerating and the Federal Reserve Board is growing more concerned about the potential risks to the banking system.

The Department of Housing and Urban Development is looking at warehouse lending to see if such transactions are legitimate secondary market transactions under the Real Estate Settlement Procedures Act.