Thanks to higher interest rates and rock-solid valuations, the market for securities backed by mortgage servicing rights is beginning to heat up, with at least two deals hitting the market this month – one from PennyMac, the other from AmeriHome Mortgage.

The Department of Justice this week announced a $4.9 billion settlement with the Royal Bank of Scotland to resolve legacy-related claims that the bank misled investors on the quality of residential MBS they purchased from RBS between 2005 and 2008.

Mortgage servicers and investors often complain about long foreclosure timelines in states with a judicial foreclosure process, but Moody’s Investors Service said the delays will only marginally increase losses on residential MBS.

There are fewer structural protections in today’s speculative-grade securities backed by subprime auto loans compared to below-investment grade issuances in the 1990s, according to an S&P Global analysis of the subprime auto loan ABS sector.

Ginnie Mae officials described a two-pronged approach to assuring MBS investors that the agency is protecting their interests from the risk that issuers might fail to deliver principal and interest payments in a timely manner.

Two years ago, Computershare Limited bought Capital Markets Cooperatives, one of the largest mortgage co-ops in the U.S., for roughly $71.2 million.

Banks still favor Fannie Mae and Freddie Mac pass-through securities, but…

Some key regulatory concerns remain unresolved or unclarified, according to SIFMA…

Meanwhile, the Mortgage Bankers Association this week reported a substantial decline in its seasonally adjusted mortgage delinquency data series.

It might be in Ditech’s best interest if Houlihan Lokey finds a buyer now while MSR values are still peaking…