Mortgages

Carrington and Selene will take over from Bank of America as subservicers of this storied portfolio, which has atrophied from $26 billion to less than $6 billion.

Confidence among homebuilders rose more than forecast in July, reaching the highest level in six months, as growing payrolls brightened the outlook after a shaky first half.

American International Group will get at least $650 million in a settlement with Bank of America Corp. as the second-biggest U.S. bank seeks to end liability for faulty mortgages.

The bank has "one more sale to wrap up this quarter," its chief financial officer says.

Mortgage applications decreased last week from the previous week, led by a drop in purchase loan requests.

First Commonwealth Financial Corp. in Indiana, Pa., has launched a new residential mortgage banking division.

Borrowers with a first-lien modification and home equity line of credit could face a spike in their monthly mortgage obligations when the interest rates on both loans reset next year.

With mounting indicators clearly showing that the so-called housing recovery was just an illusion, and many housing industry pundits who formerly touted the validity of said recovery now recanting their views, there should be no doubt that we are headed for another/further housing downturn.

"The real question for me is should we be in the FHA business at all," the CEO says.

Ocwen Financial has repurchased approximately $72.3 million in stock from WL Ross & Co., a private-equity firm in New York.

PennyMac Mortgage Investment Trust has entered into a repurchase agreement with Bank of America to finance roughly $550 million in newly originated mortgage loans, though its subsidiary PennyMac Operating Partnership.

Mortgage-bond buyers, facing a supply shortage as their market shrinks and trading slows, get a chance tomorrow to bid for securities at the largest auction of its type since at least 2010.

The Justice Department's $7 billion deal with Citigroup is likely not the last big government maneuver to penalize banks for faulty mortgage-related practices leading to the financial crisis.

The Federal Home Loan Bank of Chicago is launching a pilot program soon to buy home loans and issue Ginnie Mae securities. The program could allow community banks and credit unions to stay in the mortgage business.

The improvements in CMBS delinquency rates could reverse, the ratings agency cautioned, if applications for large servicing transfers and loan modifications are declined in the coming month.

The CFPB's guidance provides no specific rules or bright lines – leaving the agency the flexibility to call it how it sees it and reflecting a desire to regulate through enforcement.

Harbinger Group, a holding company in New York, has agreed to acquire a majority interest in CorAmerica Capital, a commercial real estate firm in Los Angeles.

“Under the terms of this settlement, the bank has admitted to its misdeeds in great detail,” U.S. Attorney General Eric Holder said.

The Consumer Financial Protection Bureau says brokers will have to comply with compensation limits even if they are funding loans via a warehouse line of credit.

Wells Fargo executives said they support federal regulators' effort to expand mortgage credit availability but cautioned that it will produce little benefit for the bank's, or the industry's, bottom line.