As with previous MBS issued by Springleaf, the mortgages in the security were originated by firms owned by Fortress Investment Group.

The sale price breaks down as follows: $2.43 billion for the servicing advances and $241 million for the MSRs.

Citigroup, which runs an active NPL trading desk, acquired the assets from a large money-center bank.

The suit was filed in December 2012 on behalf of hundreds of thousands of investors who bought stock in an offering by Fannie in May 2008, four months before the GSE was taken over by the government.

New report sheds light on how much nonbank mortgage workers earn.

New MBS and ABS issuance slowed in the second quarter of 2013 as rising interest rates in June stalled the market’s momentum. A total of $495.4 billion in residential MBS and non-mortgage ABS were issued during the second quarter of 2013, according to a new Inside MBS & ABS market analysis. That was down 3.7 percent from the first quarter of the year, although total production during the first half of 2013 was still up 17.8 percent from the same period last year. June was...[Includes one data chart]

Credit Suisse and Shellpoint Partners decided to damn the torpedoes and issue a total of three non-agency jumbo MBS at the end of the second quarter of 2013 despite concerns about investor appetite. The Shellpoint MBS was a proof-of-concept affair, while at least one of the Credit Suisse deals appears to be aimed at unloading seasoned originations from one lender. The three deals totaled $1.10 billion. Analysts at Bank of America Merrill Lynch said...

Issuers of new non-agency MBS continue to resist requests from investors to standardize reps and warrants for new issuance. Issuers suggest that investors will eventually differentiate pricing between deals based on reps and warrants, but it hasn’t happened yet. “Securitization platforms do – and will likely continue to – differ in terms of the scope of the reps and warrants provided,” according to analysts at Standard & Poor’s. “While standardizing reps and warrants would be a step towards improving transparency in the residential MBS market, the new issue jumbo market has shown substantial diversity even with relatively few recent transactions.” S&P recently hosted...

Could rising interest rates and a shake-up in the repo market cause some real estate investment trusts that specialize in the MBS market to dump securities en masse? A new report from Fitch Ratings notes that repurchase agreements represent 90 percent of agency mortgage REIT liabilities. “In a deleveraging scenario, MBS investors reliant on repo borrowing may need to liquidate some of their holdings,” writes Fitch analyst Robert Grossman and his team. If that happens it might create what Fitch calls a “knock-on” effect for MBS valuations and the mortgage market in general. The cash provided via repo lines is...

Credit unions held a total of $107.1 billion of MBS in their portfolios at the end of the first quarter of 2013, according to a new Inside MBS & ABS analysis and ranking of call report data. That was up 4.9 percent from the previous period, a relatively strong increase in a market where the supply of MBS outstanding has barely budged and the Federal Reserve represents a huge competitor for new issuance. Compared to a year ago, credit union MBS holdings were up 10.9 percent, while the total MBS market actually declined by 1.4 percent. Credit unions for the most part have ignored...[Includes one data chart]