The U.S. Supreme Court last week unanimously decided a securities fraud case that could cause the Securities and Exchange Commission to act sooner rather than later in bringing enforcement actions against MBS fraud. In Gabelli et al. v. Securities and Exchange Commission, SCOTUS ruled that in an SEC action to recover civil penalties, the five-year statute of limitations begins ticking when the fraud occurs, not when it is discovered. Reversing an opinion by the U.S. Court of Appeals for the Second Circuit, SCOTUS rejected...

The available supply of residential MBS grew marginally during the fourth quarter of last year as the agency market grew enough to offset the ongoing decline in outstanding non-agency MBS, according to a new analysis by Inside MBS & ABS. The supply of single-family agency MBS increased by $48.1 billion during the fourth quarter, a 0.9 percent increase over the three-month period. The Federal Reserve gobbled up all the increase and then some; its total agency MBS holdings rose by $91.6 billion during the fourth quarter, an 11.0 percent increase from the previous period. Mutual funds appeared to hold...[Includes two data charts]

Mary Jo White, the nominee to chair the Securities and Exchange Commission, said this week that enforcement actions against Wall Street firms and implementation of rules relating to credit ratings will be two of her many priorities if she is confirmed as head of the SEC. Industry analysts suggest that the Senate will easily confirm her nomination. “At the SEC, there’s no institution too big to charge,” White said at a hearing this week by the Senate Committee on Banking, Housing and Urban Affairs. The comment was...

Most mortgage banking firms – both bank and nonbanks alike – have been posting record profits over the past year, creating the pleasant problem of what to do with all that cash. According to interviews conducted by Inside Mortgage Finance over the past few weeks, certain nonbank owners have been taking cash out of their companies, using the money to pay hefty tax bills. Others have been leaving money in the company and searching for ways to shelter income. One way to do that, according to some tax experts, is to retain originated servicing rights. This is...

Proposed legislation would ban the use of guaranty-fees to pay for non-housing federal expenditures.

Freddie Mac is still owed $1.2 billion from Lehman Brothers, which went bust five years ago. Also, Wells Fargo sells NPLs to Citigroup.

Not only was the jumbo market on a roll last year but the GSEs were major players, according to new figures compiled by Inside Mortgage Finance.

Will the White House soon unveil its FHFA director candidate?

Activity in the jumbo MBS market is hopping.Shellpoint Partners is targeting mid-year for its first deal.

Roughly 9,000 HUD/FHA workers could lose pay under federal sequestration.