When interest rates rise, so do the value of mortgage servicing rights.

In a new filing with the SEC, Walter Investment said it discovered that its new reverse subsidiary had failed to record certain servicing errors.

Will cash-out refinancings ever return? Meanwhile, a new petition posted on the White House website that might helps GSE shareholders is taking off.

Community banks are getting slapped with a "low activity" fee from Freddie Mac and the ICBA is not happy.

Thanks to rising interest rates, the book value of mortgage servicing rights increased in the first quarter. Could more sales be on the way?

The Consumer Financial Protection Bureau has issued two new compliance guides but is warning that they are not substitutes for the underlying rules.

The Federal Housing Finance Agency would see the 12 Federal Home Loan Banks come up with their own internal credit rating system under a proposed rule issued by the FHFA two weeks ago. Published in the May 23 Federal Register, the Finance Agency proposal would remove a number of credit rating references and requirements in certain safety and soundness regulations affecting the FHLBanks. FHFA regulations require the FHLBanks to assess the credit-worthiness of a security or money market instrument that either the Bank is considering investing in or the Bank is helping another financial institution invest in.

The Federal Housing Finance Agency has settled its second mortgage-backed securities lawsuit in its massive litigation effort against non-agency MBS issuers and underwriters that sold to Fannie Mae and Freddie Mac. Citigroup last week agreed to pay damages to settle allegations that the investment bank sold $3.5 billion of faulty MBS to the two GSEs in the years leading up to the financial crisis. The FHFA filed suit during the summer of 2011 against 18 financial institutions, including Citi, alleging violations of the federal Securities Act of 1933.

Seller/servicers doing business with Freddie Mac will be charged a so-called low-activity fee for not meeting new quotas for loan deliveries and mortgage servicing beginning next year, according to a recent policy change announced by the GSE. Freddie said it will assess lenders a fee of $7,500 if they fail to deliver mortgage loans with an aggregate principal balance of more than $5 million or service mortgages for the GSE with an aggregate balance of at least $25 million. Freddie will begin monitoring loan sales and servicing beginning this year and imposing the low-activity fee on slackers beginning January of next year.

The Federal Housing Finance Agency last week directed Fannie Mae and Freddie Mac to extend both the Home Affordable Modification Program and their streamlined modification initiative until 2015. The move was in concert with actions by the Treasury Department and the Department of Housing and Urban Development. Both agencies said they would extend HAMP for non-Fannie and Freddie loans, but the FHFA’s directive makes the extension applicable to loans owned or guaranteed by the GSEs.“These extensions keep two valuable foreclosure prevention programs available to those who need them,” said FHFA Acting Director Edward DeMarco. “The extensions also align the end date for three key assistance programs that were developed in response to the housing crisis.”