Fannie Mae, Freddie Mac and mortgage-backed securities trustees representing investors in non-agency MBS sued the city of Richmond, CA, this week to stop it from further implementing a plan to use eminent domain authority to seize and purchase performing underwater mortgages. Wells Fargo and Deutsche Bank, acting as trustees for a group of investors that includes BlackRock, Inc., Pacific Investment Management and the government-sponsored enterprises, filed the lawsuit in federal court in San Francisco at the behest of certificate holders. The plaintiffs are asking the court to declare the “Richmond Seizure Program” unconstitutional and in violation of California laws, and to order city officials to end the program. Securitizers and investors are...

Wells Fargo cuts 760-plus mortgage workers. Meanwhile, Bexil American enters the New Jersey market through the wholesale channel.

Specifically, Sen. Warren says she wants information on seller/servicers that were granted price breaks and the “basis” for “granting more favorable terms.”

According to the Department of Housing and Urban Development, FHA has nearly exhausted its $25 billion authority for FY 2013 to insure multifamily, risk share and health care programs.

In other words, if Fannie keeps earning money at this rate, it could repay its “debt” to Treasury by year-end or the first quarter of next year.

Redwood Trust said it expects to hit its goal of acquiring $8 billion in non-agency jumbos in 2013, “but it won’t be easy" company officials said.

Who says that wholesale lending through loan brokers is dead? Carrington Mortgage and other firms are expanding in the sector.

For the first time in six years, the four surviving private MIs reported a combined profit on their domestic MI business during 2Q13.

The SEC said the deal has taken nearly $70 million in losses – the greatest loss rate of any comparable securitization from Bank of America. An additional $50 million in losses are expected.

In its earnings release, Freddie said it will not capture its deferred tax asset (DTA) valuation allowance which now stands at $28.6 billion.