Secondary

Citigroup plans to cut roughly 350 additional jobs this year from its securities division, which includes investment banking and trading.

San Bernardino County's proposal to use eminent domain to seize, and then restructure, underwater private-label mortgages could hurt Fannie Mae, Freddie Mac and the Federal Home Loan Banks.

On July 17, a 26-count indictment was unsealed charging Eliseo Jara Jr., Sergio Jara, Antonio Perez Marcial, Lucia Yolanda Chavez, Arlene Jeanette Jara, Candace Shantel Gonzales, Joseph Shawn Chavez Jr., Melissa Rochelle Jara and Ricardo Fabian Salinas in a mortgage fraud conspiracy. The indictment was returned on July 12 by a federal grand jury in Fresno and the defendants were arrested at their residences on July 17.

The Securities Industry and Financial Markets Association has reached a consensus on the issue of cities using their power of eminent domain to refinance underwater mortgages that reside in private-label MBS, saying it will foul up the securitization process.

As we’ve reported before, private equity firms have been eyeing the mortgage market for the past two years – in particular MSRs. But here’s the catch: although there has been plenty of ‘talk,’ no household name PE firms (if there is such a thing) have taken the bait.

The Prestwick Mortgage Group is marketing a $58 million package of MSRs backed by mostly multifamily commercial mortgages held by private investors.

Orrstown Financial Services sold $28.6 million of nonperforming commercial loans to an unnamed outside investor.

Wells Fargo will continue to purchase brokered loans through its correspondent channel, which has cheered up the National Association of Mortgage Brokers.

Total loan application volume increased 16.9% on a seasonally adjusted basis for the week ended July 13.

The problem with the jumbo MBS market is the sterling credit quality of current production and the staunch unwillingness of originators to sell mortgages into securitization trusts.