A federal district court judge in Manhattan this week rejected Wells Fargos plea to dismiss a lawsuit alleging it lied about the quality of home loans submitted to the Department of Housing and Urban Development for FHA insurance over a 10-year period. District Court Judge Jesse Furman allowed government claims under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 to proceed but ruled that legal injury claims based on events that transpired before June 2009 were time-barred and that the government had waited too long to file a lawsuit. The judge also threw out claims of negligence and unjust enrichment. The government filed...
Besides Citi, a handful of large depositories are in the midst of wrapping up sizable MSR auctions this week, including offerings from Wells Fargo and Flagstar Bancorp.
Residential mortgage REITs held $327 billion of single-family MBS at the end of the second quarter, according to a new market analysis by Inside MBS & ABS.