Kara Stein, a commissioner at the Securities and Exchange Commission, said the SEC needs to take action regarding the rating services. It was one of many recent MBS-related calls for action directed at the SEC, from the agency's leadership, Congress and industry analysts. "We need to finally and firmly address the conflicts of interest in asset-backed securitizations and the provision of credit ratings," Stein said in a speech late last week. She noted...

Fannie Mae and Freddie Mac continued to sell off their holdings of non-agency commercial MBS as the preferred strategy for meeting their regulator's demand that the two government-sponsored enterprises accelerate the reduction in their retained mortgage portfolios. The two GSEs reduced their CMBS holdings by 51.4 percent over the course of 2013, according to an Inside MBS & ABS analysis of year-end financial statements. The Federal Housing Finance Agency ordered the two GSEs to sell at least 5 percent of their "less-liquid" mortgage assets, meaning whole loans and non-agency securities. CMBS are...[Includes one data chart]

Consumer credit sectors such as auto and credit card ABS continue to enjoy improving fortunes, notwithstanding some bumps and bruises that remain in the recovery from the financial crisis that lead to the Great Recession. During the fourth quarter of 2013, the U.S. credit card ABS sector turned in its fifth consecutive improving performance across all major benchmarks to close out the year on a positive note, according to the latest quarterly index from Fitch Ratings. Both charge-offs and delinquencies improved...

Ocwen Financial, the largest nonbank servicer in the nation, recently came to market with a unique security: a bond collateralized by residential servicing rights on Freddie Mac loans. However, it remains to be seen whether the deal will be replicated by others. The bond -- Ocwen Asset Servicing Income Series 2014-1 -- is expected to raise $123.5 million in a private placement. The reference pool is $11.8 billion. Monthly payments to investors will be...

Morgan Stanley has agreed tentatively to pay $275 million to the Securities and Exchange Commission to resolve an investigation into certain subprime MBS which the company sponsored and underwrote in 2007. The SEC has yet to sign off on Morgan Stanley's settlement proposal, which includes being charged for violation of federal securities laws and payment of disgorgement and penalties totaling $275 million without admitting to or acknowledging any wrongdoing. In an annual SEC filing, the New York-based bank said...

The Federal Housing Finance Agency ordered the two GSEs to sell at least 5 percent of their “less-liquid” mortgage assets, meaning whole loans and non-agency securities. CMBS are arguably the most liquid of these.

Some mortgage brokers see the switch to a mini-correspondent as their only way to stay in business due to provisions in rules from the Consumer Financial Protection Bureau.

The ATR survey was sent to 53 mortgage-originating entities, mostly mortgage bankers with some independent mortgage brokers and other originators. No credit unions or savings and loans responded.

In an earnings call this week, company founder and Executive Chairman Bill Erbey offered no further insight as to when the sale will be approved.

What does the seller of the MSRs think about what's going on with the DFS? A spokesman for the nation's largest lender and servicer told IMFnews: "Wells Fargo has not been a party to any discussions with the New York Department of Financial Services regarding Ocwen."