Private-label

Morgan Stanley agreed to pay $3.2 billion to end a joint federal-state investigation into its handling of mortgage-backed securities, the fourth deal to be struck in a probe of the big U.S. banks' role in the subprime mortgage meltdown and the financial crisis it spawned.

Many institutional investors are refusing to purchase mortgages loans until they get assurance from the CFPB that they won't have to pay for others' mistakes. Their pullback could further the slow the issuance of private-label mortgage bonds this year, a huge concern at a time when the majority of home loans are insured by Fannie, Freddie and the FHA.

Clayton Holdings has been selected by Angel Oak Capital Advisors to be the representation-and-warranty reviewer for a $150.4 million private-label securitization of nonprime loans.

WinWater Home Mortgage's first prime jumbo securitization of the year is backed by a mix of 15-year and 30-year loans, according to DBRS.

JPMorgan Chase agreed to pay almost $1 billion to resolve claims by Ambac Financial that it was duped into insuring mortgage bonds backed by shoddy loans, clearing the way for approval of a larger settlement over similar allegations.

Home Partners of America is securitizing a portfolio of single family rental homes with a unique feature: the tenants lease-to-own.

Barclays Plc is exiting residential mortgage and commercial mortgage backed securities trading and asset-backed derivative in the U.S., according to a memo seen by Bloomberg. Operations will be focused on origination-led ABS and primary CMBS.

Goldman Sachs Group Inc.'s fourth-quarter net income dropped 65% because of the costs to settle a mortgage probe.

Goldman Sachs said it agreed to settle a U.S. probe into its handling of mortgage-backed securities for about $5.1 billion, cutting its fourth-quarter profit by about $1.5 billion.

Private-label investors in residential mortgage-backed securities should be at only modest risk for noncompliance with TILA-RESPA integrated disclosure requirements, according to Fitch Ratings.