Securitization

Credit Suisse Group settled a three-year-old lawsuit by Assured Guaranty accusing the bank of misrepresenting the quality of loans in mortgage-backed securities it insured.

Goldman Sachs is preparing to bring its first post-crisis prime jumbo residential mortgage-backed securities transaction to market.

A final judgment against Bank of America in a mortgage-bond lawsuit by the Securities and Exchange Commission was signed by a federal judge, helping clear the way for the lender to complete a $16.7 billion global settlement of claims it misled investors about risk.

A Redwood Trust subsidiary priced a $200 million aggregate principal amount of its 5.625% exchangeable senior notes due 2019 in a private offering to institutional buyers.

More property owners are jumping on a drop in financing costs and loosening terms to pay off their mortgages.

Fitch Ratings has downgraded Nationstar Mortgage's ratings in several servicer categories.

The deals are backed by a fixed-rate loan with a term of 10 years, the longest loan tenure to date for such deals.

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

The risk that the failure to refinance a loan collateralizing a single-family rental securitization would cascade into a "widespread" decline in property prices is low, according to Moody's Investors Service.

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

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

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 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.

The underlying loan is fixed-rate and amortizes on a monthly basis over a term of 10 years, the longest loan tenure to date that has backed a single-family rental securitization.

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.

Federal prosecutor Loretta Lynch may soon replace Attorney General Eric Holder, leaving bankers wondering whether she will be tougher on institutions than her predecessor.

A renewed interest in subdivisions that stalled during the recession is likely the main reason the California Debt and Investment Advisory Commission reported doubling of refunding volume in land-secured Mello-Roos bonds from fiscal year 2011-12 to 2012-13, according to government consultant Larry Kosmont.

Commercial mortgage-backed security delinquencies declined during October, according to Fitch Ratings.