Secondary markets

Shares of real estate investment trusts fell the most since August after an upbeat reading on U.S. jobs increased the odds the Federal Reserve will raise interest rates this year.

Jumbo loan securitizer Redwood Trust Inc. posted a sharp decline in profits in the third quarter driven by negative noninterest income.

Fannie Mae was affected by the same derivatives accounting mismatch that led to Freddie Mac's first quarterly loss in four years. But its bulk and balance sheet provided enough cushion for the larger of the two government-sponsored enterprises to post a profit for the third quarter.

Ocwen Financial is back with another round of term notes issued from its Ocwen Master Advance Receivables Trust.

Citigroup plans to issue another $421 million of reperforming residential mortgage bonds from its Citigroup Mortgage Loan Trust, according to DBRS.

Fannie Mae will pay the U.S. Treasury Department $2.2 billion after reporting a net income of $2 billion for the third quarter.

Nationstar will provide servicing-released option for fledging Chicago's MPF Government MPF program.

New rules proposed by international banking regulators would severely reduce, and possibly eliminate, banks' profitability in trading bonds that finance everything from home loans and apartment mortgages to auto loans and student debt, according to JPMorgan Chase & Co.

BlueVirgo Capital Management is marketing $106 million of bonds backed by tax-lien certificates on property in New Jersey and Florida, according to Kroll Bond Rating Agency.

Five Oak Investment Corp, a real estate investment trust that manages a portfolio of agency and nonagency RMBS, is back with a second securitization this year, according to Kroll Bond Rating Agency.

Freddie Mac Chief Executive Donald Layton insisted Tuesday that the government-sponsored enterprise showed "very strong fundamentals" in the third quarter, despite reporting a $501 million loss due to an accounting mismatch with its use of derivatives.

American International Group Inc. CEO Peter Hancock dismissed activist investor Carl Icahn's proposal to split the company into three insurers, saying a division would limit earnings diversity and reduce the value of some tax assets.

Freddie Mac posted a third quarter loss of $501 million, its first quarterly loss in four years, but the government-sponsored enterprise will not request a draw from the U.S. Treasury.

The government-sponsored enterprise is working to rebuild partnerships with church organizations and housing financing agencies as part of a broader effort to make owning a home affordable for low- and moderate-income families.

Canadian Imperial Bank of Commerce said there's "no merit" to a lawsuit filed by a unit of Cerberus Capital Management LP accusing the bank of defaulting on payments tied to U.S. real estate.

Deutsche Bank is exiting agency residential mortgage-backed securities trading as part of a larger strategic plan announced Thursday that cuts thousands of positions in numerous business lines worldwide.

The administration apparently intends to leave office without addressing Fannie Mae and Freddie Mac's capital bases and therefore the tight credit conditions.

Radian Group's private mortgage insurance subsidiary pulled back from certain pricing discounts that have driven competition in recent months in that business.

Nobody thought it would be pretty, but last quarter's results were even worse than expected, and low fee revenue is largely to blame. Trading and mortgage banking were particularly bad, and few of the big banks managed to offset the declines.

Freddie Mac is preparing its fourth offering of bonds offloading exposure to actual losses on mortgages that it ensures, according to Fitch Ratings.