Secondary

The Federal Housing Finance Agency's plan to restrict membership to the Federal Home Loan Bank System could cost lenders hundreds of billions in mortgage funding, according to the CEO of the Chicago FHLB.

Mortgage REIT wants more control over servicing so it can transfer delinquent loans to special servicers.

Rialto Capital is in the market with $147 million of bonds backed by nonperforming commercial and residential mortgages, according to a presale report published by Kroll Bond Rating Agency.

Legacy mortgage insurers welcome the level playing field that will come with a recent capital retention proposal, even though the new requirements will have a greater impact on firms that have larger volumes of insurance on high-risk loans.

The U.S. Treasury is seeking to stoke issuance in the mortgage-bond market by pushing credit-rating firms to offer more information on how they might grade securities tied to riskier loans.

Despite regulatory constraints on servicing transfers that affect large players, increased compliance costs and capital ratio requirements are a bigger burden for smaller servicers to bear.

HSBC Holdings Plc will pay $550 million to resolve accusations of misconduct in its handling of mortgage securities that saddled taxpayers with losses after the financial crisis.

Mortgage real estate investment trusts are an important source of private capital for the housing market and appear to be aligned with the mission of the Federal Home Loan Banks, according to a top advisor to Treasury Secretary Jack Lew.

American Homes 4 Rent in Agoura Hills, Calif., expects to raise about $488 million from the sale of rental revenue backed securities.

PennyMac became the third largest correspondent aggregator after banks turned their back on the mortgage origination channel. With banks now increasingly shedding servicing rights, PennyMac is poised to make a similar play in servicing.