Secondary markets

Credit Suisse's DLJ Mortgages is marketing a reperforming mortgage securitization, according to Kroll Bond Rating Agency.

Lenders who make or buy non-qualified mortgages are learning how to get more of a handle on the risks, in part by ensuring they don't stray too far away from QM boundaries.

The U.S. Securities and Exchange Commission resolved an impasse over punishing Bank of America Corp. in a mortgage-bond case, clearing the way for the lender to complete a $16.7 billion global settlement, people familiar with the matter said.

Bond investors are wresting higher yields from landlords in the fledgling business where rental homes are financed by credit markets.

Fannie Mae and Freddie Mac updated their representation and warranties frameworks in a move designed to encourage mortgage lenders to ease credit restrictions by limiting repurchase requirements.

The average rate for the 30-year mortgage dropped below 4% compared with the previous week, according to a report by Freddie Mac.

Fannie Mae and Freddie Mac's new low down payment loans products may not represent such a risk to the Federal Housing Administration program as some have feared.

Fannie Mae priced its final risk-sharing offering for this year of Connecticut Avenue Securities bonds for $1.45 billion.

Only eleven months after cheering Federal Housing Finance Agency Director Melvin Watt's confirmation, Senate Democrats are fed up with the pace of reforms at the agency.

More than 60 members of Congress joined banks and credit union trade groups this week in urging the agency to modify its plan to require members of the 12 regional Home Loan Banks to hold a certain percentage of mortgages on their books.

The New York unit of Japanese securities firm Nomura Holdings may be three traders short after reportedly placing them on leave, but the firm is said to have muscled away a large auction held yesterday.

The U.S. Treasury and the federal overseer for Fannie Mae and Freddie Mac should consider ending government control of the two companies if Congress fails to reform the housing-finance system, Sen. Tim Johnson said.

The Federal Reserve Bank of New York has selected Mischler Financial Group, Brean Capital and Loop Capital Markets to participate in its mortgage-backed securities pilot program.

The company is a new player in the market linked to Cerberus, an investor in pre-downturn jumbo securities market participants.

A secondary market system "dominated by Fannie and Freddie in conservatorship is simply not desirable," Castro says.

Because the FHFA drew down vast amounts of taxpayer funds to "pay" for accounting provisions that would later be reversed, the GSEs remained saddled with in senior preferred stock that paid a dividend rate of 10%, until that rate was revised upward.

A report due next week on the Federal Housing Administration's financial health is expected to show that the agency's reserve fund has significantly improved over the past year.

Mel Watt, director of the Federal Housing Finance Agency, has set off a political tempest.

Fannie Mae has entered into deals with JPMorgan Chase and other companies that transfer some of the credit-loss risk on mortgage-backed securities to investors. Not only do these deals reduce the danger that taxpayers could be forced to cover the GSEs losses, they may help make mortgages more affordable.

Mortgage rates fell slightly compared to last week, according to Freddie Mac.