SunTrust Banks started off the new year reliving the pain of the last six years since the financial crisis by revealing it plans to take yet another financial hit – this time, a $145 million legal expense in its fourth quarter results tied to legacy mortgage issues. In a Form 8-K filing with the Securities and Exchange Commission early this week, David Wisniewski, deputy general counsel, said the bank was taking the charge “to increase legal reserves and complete the final resolution of one matter. Accordingly, based on current information, the company expects its estimate of reasonably possible losses related to legal matters, in excess of reserves, to decrease by approximately this amount.” Wisniewski did not specify...

“Auctions would determine the market prices of those guarantees and allocate them to the lenders who most valued them,” the CBO said.

Of course, we’re waiting to see what Republicans on Capitol Hill think of a cut in FHA premiums…

MBA's Stevens believes that making a change in the PSPAs would not go over very well in a Republican-controlled House and Senate.

Mortgage brokers originated 21.3 percent of Golden State mortgages during the first nine months of the year...

SunTrust wouldn’t comment on the charge other than to note that the issue has been previously disclosed.

MountainView did not identify the company selling the servicing rights except to say it is a “well capitalized servicer.”

Are recent graduates of business schools avoiding the mortgage industry?

Who knows, maybe Mel Watt will allow Fannie and Freddie to build retained earnings. (Don’t bet on it, but it’s an issue worth debating.)

Rep. Scott Garrett, R-NJ, is concerned that Fannie and Freddie have resumed lobbying, at least in subtle ways.