Investors are paying more for vintage non-agency MBS with repurchase disputes and pending settlements than securities not involved in representation and warranty litigation, according to analysts at Amherst Securities Group. The increased pricing comes as the proposed $8.5 billion settlement on non-agency MBS issued by Countrywide Financial nears its conclusion. In the past year, pricing on non-agency MBS involved in rep and warrant litigation outperformed securities not subject to such lawsuits, according to Amherst. “It appears these securities received different treatment, as investors likely included recovery cash flows, and priced the bonds accordingly,” the analysts said. As an example, Amherst pointed...