Assured Guaranty won a lawsuit this week against Flagstar Bank regarding a breach of representations and warranties on more than $900 million in non-agency mortgage-backed securities issued by Flagstar. Industry analysts suggest the ruling is significant as it is one of the first in favor of bond insurance companies trying to enforce breaches of reps and warrants, and U.S. District Judge Jed Rakoff endorsed many of the tactics they have used to seek buybacks, including ... [Includes two briefs]

A deeply divided House Financial Services Committee took on FHA solvency this week as critics and defenders clashed over the agency’s practices, financial health and future role in the nation’s housing market. The distinctly partisan tone of the hearing quickly raised doubt as to whether the Republican majority and their Democratic opponents can come to some compromise to strengthen the FHA and reduce its risk to taxpayers. Committee Chairman Jeb Hensarling, R-TX, echoed complaints by Republican colleagues that the FHA is ...

The FHA this week has proposed to set a 95 percent maximum loan-to-value ratio for FHA-insured loans over $625,500, effectively raising the minimum downpayment for jumbo loans from 3.5 percent to 5 percent. In a Feb. 6 Federal Register notice, the FHA said the proposed change is aimed at improving the health of the Mutual Mortgage Insurance Fund, whose statutory capital reserve ratio has fallen to a precarious level, raising the specter of a taxpayer bailout. Despite steps taken since 2009 to strengthen the MMIF, actuarial reviews of the fund have projected rising levels ...

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.

Nationstar sets a target goal of amassing $500 billion of mortgage servicing rights.

Mortgage REIT Two Harbors continues to work away at a potential jumbo MBS deal.

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.

First Guaranty is experiencing strong growth in its servicing business. Meanwhile, lenders worry about higher net worth requirements from the GSEs.

Standard & Poor's, which had a huge ratings market share tied to subprime MBS, was sued by the government for negligence.