RMBS

Privatizing the government-sponsored enterprises is a priority for Treasury Secretary-designate Steven Mnuchin. Here's a look at what it will take to pull off and the potential implications for the mortgage industry of unwinding the conservatorship.

Treasury Secretary-designate Steven Mnuchin's plan to remove Fannie Mae and Freddie Mac from government control could mean increased competition for lenders' loans. But it could also prompt a rise in mortgage rates.

Some banks are set to get a fourth-quarter earnings boost from their MSR portfolios, thanks to a sudden spike in yields on Treasury bonds. Add to that the prospect of further rate hikes and the potential dismantling of Basel III, and more banks could be encouraged to re-enter the servicing business.

Treasury Secretary-designate Steven Mnuchin wasted no time Wednesday wading into one of the thorniest debates in the financial services arena, saying the Trump administration would seek to end government control of Fannie Mae and Freddie Mac.

FirstKey Mortgage is marketing its fifth portfolio consisting primarily of formerly troubled first-lien residential mortgages that have rebounded to reperforming status.

Ally Financial has agreed to pay $52 million to settle probes and claims related to its role as the underwriter for subprime mortgage-backed securities in 2006 and 2007.

While nonbank servicers are expected to continue to gain greater market share in 2017, much of that growth will come from their own loan origination activity rather than mortgage servicing rights purchases and subservicing, according to a report from Fitch Ratings.

The yield on the 10-year Treasury Note will be 2.5% to 2.75% a year from now if President-elect Donald Trump pushes through his proposed tax cuts and fiscal-spending policies, said Michael Kushma, chief investment officer for global fixed income at Morgan Stanley Investment Management.

Cherry Hill Mortgage Investment Corp. has agreed to sell a portfolio of excess mortgage servicing rights back to its strategic alliance partner Freedom Mortgage.

The regulator's settlement with Nomura is tied to the failures of two corporate credit unions, though Nomura did not admit fault as part of its settlement.

Flagstar Bancorp's quarterly profit increased after a decline in the value of a 2012 legal settlement liability tied to its mortgage lending practices.

Moody's Corp. said federal officials are planning a lawsuit over its ratings of residential mortgage securities that critics contend were inflated to win business in the years leading up to the 2008 financial crisis.

Independent mortgage bankers are concerned that if Congress votes to privatize the Common Securitization Platform, it could give large banks too much control over the real estate finance market.

The Federal Reserve's mishandling of monetary policy in the 1970s opened the door to questionable products for unqualified borrowers, setting the stage for the housing crisis 30 years later.

Deutsche Bank jumped in Frankfurt trading after a media report that the lender is nearing a $5.4 billion settlement with the U.S. Department of Justice in a probe tied to residential mortgage-backed securities, less than half an initial request.

The Department of Justice wants banks to more fully cooperate with civil investigations. Companies now are expected to "materially assist" the agency in providing documents, access to witnesses and even inculpatory documentary evidence such as emails and text messages.

Deutsche Bank isn't the only lender wrestling with the U.S. to resolve an investigation into toxic mortgage bonds: Credit Suisse Group and Barclays are also each in settlement talks with the Justice Department.

Royal Bank of Scotland Group agreed to pay $1.1 billion to settle the first of three major U.S. mortgage-backed securities probes the bank must overcome before it can resume dividend payments.

Banks are to blame for delaying resolutions of U.S. mortgage investigations by failing to cooperate, a top Justice Department official said.

Towd Point Mortgage Trust is adding more "dirty" pool assets into its fourth reperforming mortgage securitization of 2016.