Purchases of mortgage-backed securities via the Public-Private Investment Program have resulted in returns of about 27.0 percent for taxpayers, according to figures reported by the Treasury Department. However, the impressive profit is based on return on equity alone, excluding loans made to... [Includes one graph and one data chart]

While working to establish a jumbo whole loan conduit, PennyMac Mortgage Investment Trust has been able to turn profits by investing in distressed mortgages. The real-estate investment trust avoided purchases of mortgage-backed securities during the first quarter of 2011 and increased its profits due to...

The trustee for bankrupt former jumbo lender Thornburg Mortgage filed a number of lawsuits last week claiming that the lender’s warehouse lenders made “unjustified” margin calls on Thornburg, forcing the lender into bankruptcy. In a filing with the U.S. Bankruptcy Court in Baltimore, Joel Sher, the trustee of what is now known as...

The House Financial Services’ Subcommittee on Capital Markets and Government Sponsored Enterprises this week approved a mark-up of H.R. 940, “the U.S. Covered Bond Act of 2011.” The mark-up was approved by a voice vote, including two amendments, and is scheduled to receive consideration by the...

The U.S. government is suing Deutsche Bank and its mortgage unit for more than $1 billion for allegedly abusing their direct endorsement authority by duping the FHA into insuring ineligible mortgage loans. The Department of Justice and the Department of Housing and Urban Development filed a...

The consent orders agreed to recently by 14 mortgage servicers and two third-party service providers will have little impact on the servicing of FHA loans, according to compliance experts. The only areas where the orders might create additional obligations are requirements that the servicer establish a...

A provision in the Dodd-Frank Wall Street Reform and Consumer Protection Act allowing federal agencies that insure mortgage loans to develop rules defining “qualified mortgages” (QM) for their loans may not be ideal for investors, according to industry attorneys. In addition to a recent Federal Reserve proposed rule on ability to repay ...

Wall Street analysts said it is unlikely banks will take losses on repurchased delinquent FHA mortgage loans, easing fears that FHA may not fully reimburse those losses due to servicing errors. Commenting on a report challenging banks’ policy of accruing interest on delinquent FHA loans, analysts at Keefe, Bruyette & Woods said ...

Borrowers approved by the FHA to acquire real estate owned (REO) properties under the FHA’s “$100 Down” sales incentive will benefit from new guidance issued recently by the agency. Pre-approved borrowers under an FHA REO program requiring a minimal $100 cash investment may finance ...