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."

Officials at Redwood Trust, the leader in issuance of jumbo mortgage-backed securities since 2010, suggested this week that issuance of jumbo MBS from the firm this year likely won't hit the level seen in 2013. "Our preferred distribution for jumbo loans is securitization since we can retain attractive investments for our portfolio," Brett Nicholas, Redwood's president, said this week on a call with investors. "Today, however, whole-loan sales offer better execution." He said...

Redwood Trust's jumbo activity in 2014 will not match last year's production and overall mortgage originations may be down even more, so the real estate investment trust plans to put more emphasis on doing business with the government-sponsored enterprises and commercial mortgage activities. After seeing its jumbo acquisitions triple in 2013, hitting $6.9 billion, the REIT expects a downturn in 2014, but one that's less severe than the 32 percent decline projected for the industry ...

Nonbank servicers are receiving increased attention from state regulators, the Consumer Financial Protection Bureau and members of Congress. Ocwen Financial is at the center of the storm as its planned acquisition of mortgage servicing rights from Wells Fargo on loans with an unpaid principal balance of $39.2 billion is on "indefinite hold" due to a request from New York's Department of Financial Services. Ben Lawsky, superintendent of the NYDFS, has focused on ...