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.

A federal district court in New York last week ruled that a landmark discrimination lawsuit, the first to connect racial discrimination to the securitization of mortgage-backed securities, can move forward against Morgan Stanley. A July 25 ruling by the U.S. District Court for the Southern District of New York in Adkins v. Morgan Stanley denied in part the investment bank’s motion to dismiss the case, which alleges violations of the Fair Housing Act and the Equal Credit Opportunity Act. The putative class-action suit was filed...

State and federal regulators appear to be close to getting more servicers to agree to a settlement similar to the $25 billion deal agreed to by five big banks.

Richmond, CA, is set to become the first city to implement the highly controversial eminent domain plan offered by Mortgage Resolution Partners.

Credit Suisse issued a non-agency jumbo MBS with loans seasoned an average of three months that had interest rates well below current rates.

Small, unidentified lenders are accounting for an increasing share of contributions to non-agency jumbo mortgage-backed securities.

New Penn Financial is one of the few lenders putting an emphasis on mortgages for borrowers that are foreign nationals. The company offers mortgages to non-U.S. citizens with rates and terms somewhat looser than those offered by other lenders operating in the niche market. “Our proprietary program offers flexibility and fewer restrictions,” New Penn said. While data on mortgages to foreign national borrowers are scarce, the loans largely appear to be a non-agency product, both held in portfolio and sometimes securitized ...

The non-agency jumbo mortgage-backed securities issued by Redwood Trust between March 2010 and November 2012 haven’t taken any losses, according to Kroll Bond Rating Agency. Delinquencies on the securities remain extremely low, and a significant portion of mortgages included in the MBS have prepaid. As of July, three of the nine non-agency jumbo MBS issued by Redwood from 2010 through 2012 had loans that were delinquent. However, the loans were only in the 30-day delinquency bucket ...

The Federal Housing Finance Agency announced a settlement this week with UBS Americas regarding non-agency mortgage-backed securities purchased by Fannie Mae and Freddie Mac between 2004 and 2007. It is the third settlement out of 18 similar lawsuits filed by the FHFA in 2011 and the first to include a disclosed dollar amount. The FHFA said UBS will pay a combined ... [Includes two briefs]

The Federal Reserve expects to take further action on mortgage risk retention rules in September.