Secondary

Social Finance Inc., whose loan originations have been concentrated in the non-qualified mortgage space, will now offer conforming products after receiving Fannie Mae seller/servicer approval.

The Federal Housing Finance Agency announced Wednesday it had raised a cap on the amount of multifamily loans Fannie Mae and Freddie Mac can buy from lenders, boosting it to $35 billion effective immediately.

Freddie Mac's second quarterly loss in less than a year makes it clear profitability is getting tougher as it shrinks. But it's a concern that must be weighed against more long-term efforts to reduce Freddie's overall credit risk exposure.

Industry groups are urging the Federal Housing Finance Agency to end the sweep of profits of the GSEs so that Fannie and Freddie can rebuild capital.

United Guaranty's pretax operating income of $163 million benefited from lower mortgage delinquency rates but a decline in refinance originations affected the amount of new insurance written.

Bank of America Corp. said it reached a $190 million agreement to resolve a six-year-old legal claim from Federal Home Loan Bank of Seattle over mortgage-backed securities sold before the financial crisis.

Freddie Mac won't make a dividend payment to the Treasury Department after declining interest rates and widening spreads on investments triggered a $354 million first-quarter loss for the mortgage finance giant.

A federal judge approved Goldman Sachs Group's $272 million settlement with investors who claimed the bank misled them about the safety of billions of dollars worth of residential mortgage-backed securities.

A downturn in origination volume, offset in part by improved gain-on-sale margins, has led to a slump in mortgage banking revenue, according to Keefe, Bruyette & Woods.

Servicing rights are high-yielding assets, making them attractive investments for hedge funds, real estate investment trusts and banks.