JPMorgan Chase is a step closer to settling a dispute with Deutsche Bank and the Federal Deposit Insurance Corp. over certain mortgage securitization agreements in connection with the government’s takeover of failed mortgage lender Washington Mutual. According to Chase’s most recent 10-Q filing with the Securities and Exchange Commission, the firm, Deutsche Bank and the FDIC have signed a term sheet to resolve pending litigation brought by the German bank against Chase and the FDIC in relation to WaMu as well as Chase’s outstanding indemnification claims pursuant to the terms of the purchase-and-assumption agreement with the FDIC. The term sheet is subject...

Although delinquencies on commercial MBS rose for a fifth straight month during July, predictions of a bust have not developed and many analysts are starting to feel more comfortable with the sector, especially in regard to multifamily credits. According to figures compiled by Trepp, the overall delinquency rate on U.S. CMBS increased 16 basis points during the month to 4.76 percent. The percentage of loans considered seriously delinquent increased 19 bps to 4.67 percent. This compares...

A federal judge rejected efforts by the government to keep a new batch of official memos and other documents from being disclosed in the ongoing legal war over the terms of the conservatorships of Fannie Mae and Freddie Mac. U.S. Court of Federal Claims Judge Margaret Sweeney released a new set of documents that included a brief excerpt of former White House housing policy expert Jim Parrott’s deposition from January, a presentation from the Federal Housing Finance Agency in 2008 and several memos dating back to 2008 and 2012. Sweeney rejected...

Freddie Mac’s efforts to reduce holdings of nonprime mortgages and nonprime mortgage-backed securities are proceeding at a faster pace than efforts at Fannie Mae, according to a new analysis by Inside Nonconforming Markets. The government-sponsored enterprises had a combined $161.12 billion in nonprime holdings as of the end of the second quarter of 2016, down 6.3 percent from the first quarter and down 20.4 percent from the second ... [Includes one data chart]

The GSEs have reduced their holdings of subprime MBS to just $17.5 billion.

All seven of the nation’s active MIs reported hefty increases in flow volume…

According to figures compiled by Inside The GSEs, Fifth Third doesn’t even rank among Fannie’s 40 largest customers and sells almost 70 percent of his home mortgages to Freddie Mac, based on July data.

The $1.5 billion offered by MIAC has an average interest rate of 4.22 percent and delinquencies of 2.65 percent.

Lenders originated home loans that included primary mortgage insurance at a hectic pace during the second quarter of 2016, according to a new Inside Mortgage Finance ranking and analysis. A whopping $196.23 billion of new mortgage originations carried private MI during the second quarter, including significant increases in both private MI and government-insured mortgage insurance. That was up 34.1 percent from the first three months of 2016, and represented the biggest quarterly total on record. Private MI posted...[Includes three data tables]

In the event of a severe economic crisis, Fannie Mae and Freddie Mac could need a bailout of up to $125.8 billion, according to a Federal Housing Finance Agency stress test released this week. The test of severely adverse scenarios, required by the Dodd-Frank Act for companies with total consolidated assets of more than $10 billion, took place in March and is based on Fannie and Freddie portfolios as of Dec. 31, 2015. The bailout would be needed on an incremental basis and would also depend on the treatment of the government-sponsored enterprises’ deferred tax assets. Under this hypothetical economic scenario, situations include...