A federal appeals court has rebuffed the bid by American International Group’s mortgage insurance unit to overturn a lower court’s order to pay more than $45 million to SunTrust Banks for insured losses related to mortgage defaults. The Fourth Circuit Court of Appeals last week upheld a Virginia federal judge’s ruling that AIG’s United Guaranty breached an insurance agreement by refusing to pay claims on 1,305 defaulted “combo” loans – which is a first-lien loan with a smaller, second-lien “piggyback” loan. At issue were mortgage defaults that SunTrust claimed should have been covered under a ...
Genworth Financial Inc.’s U.S. mortgage insurance segment continued to be a burden to its parent despite reporting a narrower operating loss of $34 million in the fourth quarter of 2012, compared to losses of $38 million in the prior quarter and $96 million in the prior year. Nonetheless, the reduced amount of losses during the period was good news to company executives who reported net income of $166 million, or 34 cents a share, during the period from $142 million, or 29 cents, a year earlier. Operating profit was $167 million, or 34 cents a share, up from ...
California and Texas took the honors for top FHA producers among states and other U.S. jurisdictions in 2012, with a combined $59.2 billion in new mortgage loans insured by the FHA. The combined output of the two states represented 25.5 percent of the $232.1 billion in new FHA originations reported by all 50 states, Puerto Rico, Guam, the U.S. Virgin Islands and the District of Columbia for the entire year. Total FHA production by state was up a modest 5.2 percent in the fourth quarter from the previous quarter and a hefty 21.9 percent from the prior year. California, which accounts for 25 percent of the U.S. housing market, reported ...
The Federal Financial institutions Examination Council is taking a close look at social media and the risks it poses to financial institutions, including mortgage lenders.
Massachusetts will not join other states in the Justice Department’s lawsuit against Standard & Poor’s, but instead will conduct its own fraud probe tied to CDO ratings.
Fannie Mae and Freddie Mac's share of purchase-mortgage originations has increased each of the last two years, according to a new analysis by Inside Mortgage Trends.
Wells Fargo remained the top mortgage servicer in the industry at the end of 2012, but the company posted a rare decline in its portfolio during the fourth quarter and is reportedly considering selling some of its massive $1.873 trillion portfolio. A new Inside Mortgage Finance ranking and analysis of the servicing market underscores the gains made in market share by a handful of nonbanks and some regional banks, while some of the top servicers continue to pare their businesses. The servicing industry faces a significant challenge in that increased regulatory requirements are raising operational costs at a time when the overall market continues to decline. On the upside, much of the damage from the housing recession has already occurred...[Includes one data chart]
Residential mortgages sourced through the correspondent channel and sold to Fannie Mae and Freddie Mac increased by 26 percent in 2012 compared to the year before.
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