Secondary

The Royal Bank of Scotland is paying $20 million to settle an investigation by the Illinois attorney general related to the bank's marketing and sale of residential mortgage-backed securities.

Freddie Mac will make automation it has been testing in conjunction with servicing-released cash sales available to the broader market next month.

With better-than-expected performance of the underlying mortgages, Fitch Ratings cut its loss projections for seasoned government-sponsored enterprise credit risk transfer deals.

Fannie Mae and Freddie Mac enjoy considerable advantages because of their lower cost of capital and significant government subsidies. But with some conforming loans, the private market is finding a way to compete.

The deal is designed to improve capital ratios and reduce risk at the Seattle company.

Commercial and multifamily mortgage debt outstanding grew $44.3 billion during the first three months of 2018, the largest first-quarter gain since before the Great Recession, according to the Mortgage Bankers Association.

The shareholders of Nationstar Mortgage Holdings and WMIH Corp. each voted to approve a $1.9 billion acquisition plan that will see the parent company of nonbank lender and servicer Mr. Cooper combine with the successor to S&L and subprime mortgage lender Washington Mutual.

Ditech Holding Corp. is considering selling itself, just over four months after the lender emerged from bankruptcy protection.

Fannie Mae and Freddie Mac are making condominium loans eligible for automated appraisal waivers that could reduce mortgage borrowers' fees and shorten closing times for lenders.

Lauren Hedvat, Angel Oak's managing director of capital markets, said that the rising non-qualified mortgage volume in the market has expanded the number of third-party origination loan packages for purchase.