Appraisal reductions in post-crisis commercial MBS are rising rapidly and may be a harbinger of future loan losses, warned Kroll Bond Rating Agency.

Two major banks and a defunct subsidiary of Lehman Brothers have agreed to settlements with the Department of Justice to resolve legacy non-agency MBS disputes.

The majority of loans in expanded-credit mortgage-backed securities are adjustable-rate mortgages, while such loans are few and far between in prime non-agency MBS, according to a new analysis by Inside Nonconforming Markets. [Includes one data chart.]

More competition is coming into the nascent business of aggregating non-qualified mortgages and issuing mortgage-backed securities drawn by the market’s potential for profitable growth.

Meanwhile, Fannie Mae and Freddie Mac accounted for 82.5 percent of all multifamily loans securitized in the first half…

Legal argument: If the FHFA is unconstitutional, then the net worth profit sweep must be…

Second-ranked JPMorgan Chase had a similarly disappointing quarter.

At June 30, Redwood held $5.5 billion of residential loans on its books, up 40.6 percent from a year ago.

But the bailout calculations – mandated under the Dodd-Frank Act Stress Tests – were not done by the FHFA.

Earlier this year, Treasury Secretary Steven Mnuchin told the Senate Banking Committee he has the authority to restructure Fannie and Freddie without any change in law.