Poor underwriting, rather than the collapse of house prices, more likely caused homeowners to default on their non-agency mortgage loans – a situation that gradually worsened and subsequently caused the country’s worst financial disaster, according to a new report published by University Financial Associates. Subject to a number of caveats, the report’s findings dramatically illustrate the importance of eroding underwriting quality in non-agency mortgage-backed securities ...
The five largest mortgage servicers that got into trouble because of their flawed servicing and foreclosure practices have passed their final test for compliance with the 2012 National Mortgage Settlement, according to the Office of Mortgage Settlement Oversight. The OMSO report summarizes a set of five compliance reports filed by NMS Monitor Joseph Smith with the U.S. District Court for the District of Columbia for five servicers that were subject to the $25 billion ...
Bond investing giant Pacific Investment Management Co. once again has its ears open for potential acquisitions in the residential finance space, including mortgage franchises or “assets,” according to investment bankers and sources close to the company. These officials, who spoke under the condition their names not be used, identified a handful of acquisitions that have been presented to PIMCO, including a nonbank based in the Charlotte, NC, area. As Inside Mortgage Finance went to press this week PIMCO – and the target acquisition – could not be reached for comment. As a technical matter, the investments are being made...
Some of the most well-known names in mortgage lending and servicing continue to deal with a variety of regulatory crackdowns and judicial disputes, some of which stem from the 2008 mortgage market collapse. In Massachusetts, HSBC has agreed to pay $4.1 million to resolve allegations that it violated state consumer protection laws by receiving commissions and other kickbacks from insurer Assurant Inc. relating to force-placed insurance policies that it procured for struggling homeowners in the state. Under the terms of the settlement, HSBC will provide...
At the ABS Vegas conference the deal agent concept was touted by Monique Rollins, deputy assistant secretary at the Treasury Department, as a significant structural reform for the non-agency MBS market.
Freddie and Fannie both posted earnings north of $2 billion for the fourth quarter. But Freddie posted a net loss of $475 million in the third quarter of last year after booking a stunning $4.17 billion charge on its derivatives.
RSS