Risk management

Freddie Mac has taken out another reinsurance policy that transfers risk of default on mortgages it insures.

Fannie Mae and Freddie Mac unveiled an appeals process Tuesday that will allow an independent arbitrator to resolve disputes between lenders and the government-sponsored enterprises over loan repurchase demands.

Lenders argue that the GSEs would be better off buying more loans that are already insured, rather than transferring credit risk after holding them for a time. But Freddie Mac's Kevin Palmer says certainty of reimbursement is more important than the timing of risk transfers.

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.

United Guaranty's spinoff from American International Group will result in changes to its capital structure that could shake up the competitive landscape in the private mortgage insurance market.

By implementing a platform designed specifically to support quality control, lenders can continuously prepare for an audit while simultaneously executing on everyday loan quality tasks.

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.

Freddie Mac has priced a $757 million offering of structured pass-through certificates under its "K Certificates" program that securitizes recently originated multifamily mortgage loans.

Royal Bank of Scotland Group took a surprise $5.2 billion hit to the value of its assets and set aside more money for past misconduct, limiting CEO Ross McEwan's ability to return capital to shareholders.

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.

The mortgage industry can better manage disparate regulatory requirements with a comprehensive approach that streamlines compliance.

Bank of America and nine other banks have agreed to pay about $63 million to settle claims they misled the state of Virginia into buying faulty residential mortgage-backed securities.

The Federal Housing Finance Agency may face legislation or a lawsuit in the near future as it tries to force captive insurance companies to exit the Federal Home Loan Bank System.

Overlapping missions and jurisdictions are fueling competition between the Consumer Financial Protection Bureau and the Federal Trade Commission, according to former officials at both agencies.

In one corner are groups like the Community Home Lenders Association and the major credit union groups, which are hoping the administration will further cut premiums after a reduction a year ago. On the other are MBA and ICBA, which argue a cut now would be too soon.

Agency and government loan programs will be a little different in the next 12 months. There also will be new rules for private-label securitizations, along with new products available to investors. Here is an overview.

Home Equity Conversion Mortgage servicers have received an additional three months to explore loss mitigation options when borrowers or their spouses have difficulty paying their property taxes and insurance.

Spreads widened on Freddie Mac's latest offering of Structured Agency Credit Risk securities as investors demanded additional compensation for taking on the credit risk of mortgages insured by the company.

Independent mortgage lenders are expecting a wave of consolidation prompted by excessive compliance costs, a tepid housing recovery and the need for more capital to grow their businesses. Roughly 20% to 25% of independent companies could be eliminated or change hands in less than two years.

Recent Consumer Financial Protection Bureau enforcement actions against lead generation companies emphasize the breadth of lenders' responsibility for the third parties they expose borrower clients to.