A coalition of six Federal Home Loan Banks has gone to court seeking formal standing as investors in the proposed $8.5 billion Bank of America settlement over mortgage-backed securities even as court papers reveal investors could be owed a sum three times greater than the current BofA proposal.The Federal Home Loan Banks of Boston, Chicago, Indianapolis, Pittsburgh, San Francisco and Seattle together own certificates in 73 of the trusts that are part of the proposed settlement for which they paid more than $8.8 billion.

The Federal Home Loan Bank of Chicago recently announced that the nonprofit lender and real estate consultant IFF has joined the Bank as a member.Formerly known as the Illinois Facilities Fund, IFF is the first community development financial institution to join the FHLBank of Chicago and only the sixth CDFI nationally to become part of the FHLBank system.

Two House lawmakers, one Republican and one Democrat, have introduced a bill that would postpone a planned reduction of the high-cost loan limits for Fannie Mae, Freddie Mac and the FHA due to take effect this fall.Late last week, Reps. John Campbell, R-CA, and Gary Ackerman, D-NY, filed H.R. 2508, the Conforming Loan Limits Extension Act, which would mandate a two-year extension to keep conforming loan limits at 2008 levels.

California continues to be the top source of new single-family mortgages for Fannie Mae and Freddie Mac even as Fannie remains the dominant GSE in terms of production through the first half of the year, according to an upcoming special report, GSE Market Profile: First Half 2011 by Inside Mortgage Finance Publications.

Following contentious debate at times with Democrats, House Republicans last week advanced another installment of six narrow bills that would further curtail GSE activities or increase oversight while in conservatorship.The mark-up by the House Financial Services Subcommittee on Capital Markets and GSEs brings the total number of GOP-backed bills to reform Fannie Mae and Freddie Mac awaiting the full committee’s consideration up to 14 so far.

Freddie Mac’s top lawyer is leaving the GSE after five years to join the law firm of SRN Denton as co-chair of the firm’s global Financial Institutions and Funds sector.

Bank of America’s staggering $13.2 billion net loss on its mortgage banking operations overwhelmed fairly stable performance by the rest of the industry during the second quarter, according to a new analysis of earnings reports from 13 lenders by Inside Mortgage Trends. Including BofA’s huge loss, the group posted an aggregate loss of $9.8 billion for the second quarter, drowning out a modest $2.9 billion profit during the first three months of the year. The landmine in BofA’s second quarter results was a $14.0 billion provision for ... [includes one data chart and one graph]

A bill that would limit the payment of legal fees for Fannie Mae and Freddie Mac executives accused of fraud has been sent back to the drawing board for some additional tweaking.

It’s been one year since the Dodd-Frank Wall Street Reform and Consumer Protection Act has been enacted, and industry representatives remain anxious about the negative effects they expect the legislation will have on the mortgage market and the cost and availability of mortgage credit. Coming up with any new mortgage products at all will be one of the numerous challenges posed by Dodd-Frank, thanks in particular to the burdensome, 5 percent risk-retention requirement, according to Larry Platt, a partner with law firm K&L Gates in Washington, DC. “Under the Dodd-Frank risk-retention requirement, there’s ...

Loan servicers must deal with increasing paperwork and time demands, and they are often unequipped for new reporting requirements resulting from the Dodd-Frank Act. Firms such as SourceHOV say they can provide servicers with a strategy for dealing with the additional work new regulations are creating. One of the more onerous requirements is the need to handle qualified written requests. Servicers are also required to acknowledge receipt of any request. “Servicers really have two options when it comes to compliance,” said Michael Zwall, the director of mortgage services for SourceHOV, a consulting firm. “First, a servicer can decide to develop ...