Secondary

Sens. Tim Johnson, chairman of the Banking Committee, and Mike Crapo, the top Republican, laid out a preliminary bipartisan agreement on housing finance reform after months of deliberation.

The bank likely was worried about dealing with sellers who did not have the net worth to buy back loans.

USMI, successor to the Mortgage Insurance Cos. of America, says its top priority is to make sure whatever system replaces Fannie and Freddie uses at least as much private coverage.

A former managing director at the New York investment banking firm Jefferies & Co. has been convicted of multiple offenses involving a scheme to defraud customers trading in residential mortgage-backed securities.

As interest rates increase, prepayment speeds are falling precipitously, extending the maturities of mortgage-backed securities, especially the guaranteed variety. This trend is likely to cause future declines in MBS values.

Former Jefferies & Co. managing director Jesse Litvak was convicted in the only criminal case against an individual in connection with a U.S. program that used bailout funds to spur investment in mortgage-backed securities.

The housing sector is increasingly a drag on consumption and job creation. The fault lies not with the market but with ill-considered regulations and bank capital rules.

JPMorgan Chase & Co. agreed to give mortgage-bond trustees evaluating a proposed $4.5 billion settlement over bad loans an extra three months to consider signing onto the deal.

A recent deal drew more than 65 buyers, addressing what initially had been a key concern about the new securities. Policymakers had originally questioned whether they would draw enough investors.

Private-label mortgage securities issuers should act now to make their industry more standardized and transparent, the senior adviser to the U.S. Treasury on housing policy said.