Secondary markets

Ambac Financial Group earned $143.6 million in net profit for the fourth quarter of 2012, up from a net loss of $963.2 million in 4Q 2011.

After reducing legacy risks during a profitable quarter, Assured Guaranty Ltd. is making plans to start wrapping municipal deals later this year.

MBIA Inc. had a better quarter during the last three months of 2012, reporting an adjusted pretax income of $110 million, compared with an adjusted pretax loss of $118 million during the third quarter.

Bank of America Corp. is under investigation by the New York Attorney General’s Office over the bundling of mortgage loans into securities.

Freddie Mac posted earnings of $4.5 billion in the fourth quarter, up from $2.9 billion the prior quarter, and completed its first profitable year since 2007.

Discontinued operations lead to Impac having a net loss of $3.4 million for 2012, compared with net earnings of $3.2 million in 2011.

Rep. Maxine Waters also asked the government-sponsored enterprises' conservator to provide a list of outside "stakeholders" it consulted before making its decision.

Sending cuts scheduled to kick in Friday will constrain the availability of Federal Housing Administration mortgages that account for about a quarter of originations, threatening its role in the year-long housing recovery.

The combined effect of lower volumes of underperforming loans and improved workout practices helped improve the traffic of delinquent, securitized commercial mortgage loans that go in and out of special servicing.

Ocwen recorded earnings gains and record revenue in the fourth quarter fueled in part by merger, acquisition and sales activity.

DBRS and Fitch have rated Credit Suisse’s first prime residential mortgage securitization of 2013, noting that its representations and warranties are stronger than those in its previous post-crisis jumbo deal.

Meritage Homes Corp. has commenced a cash tender offer to purchase any and all of its $99,825,000 principal amount 7.731% senior subordinated notes due 2017.

PacTrust Bank will start funding loans through the warehouse and correspondent programs in March 2013.

Freddie Mac plans to offer its second K deal backed exclusively by five-year multifamily collateral.

Securitizations that significantly limit repurchases are among structural weaknesses that could prevent residential mortgage-backed securities from getting Moody’s highest rating.

The House Financial Services Committee will schedule hearings on the regulation of Fannie Mae and Freddie Mac and the competitive advantages FHA has over private insurers.

Moody's Investors Service has downgraded 16 of roughly 130 tranches backed by $2 billion in subprime mortgage loans.

Radian Group priced its 34 million share common stock offering at $8 per share before the markets opened on Wednesday.

Fortress Investment Group said fourth-quarter profit more than doubled on higher-fee income from managing funds.

Mortgage application volume declined for the third consecutive week, but one observer seems not to be concerned.