Chase Home Finance surged past Bank of America to become the second most prolific producer of agency MBS during the third quarter, according to a new ranking by Inside MBS & ABS. Chase has played third fiddle behind BofA and Wells Fargo for the past few years, and still ranked third in agency MBS production on a year-to-date basis. But BofA has been dumping mortgage production capacity and trying to claw its way to higher ground while Chase has made modest gains in market share. Those trends are likely to accelerate in coming months as BofA closes down its correspondent business after failing to find a...(Includes two data charts)
The Securities and Exchange Commission has made a good bit of progress in updating its proposal for shelf eligibility conditions for ABS in light of industry comments and the passage of the Dodd-Frank Act. However, there are still numerous areas that concern major players in the mortgage finance industry. A number of commenters took issue with the SEC’s proposal to impose an additional executive officer certification requirement. The agency originally proposed requiring the issuer to file an exhibit to the registration statement consisting of a certification of the chief executive officer of the depositor that, to his or her knowledge, “the securitized assets backing the issue have...
U.S. policymakers are studying the Canadian mortgage market, which endured a far less costly downturn during the economic recession, for ideas that could be imported in the reform of the domestic mortgage finance system. “We must find characteristics in other countries similar to our own system,” said Rep. Carolyn McCarthy, D-NY, during a hearing in the House Financial Services Subcommittee on International Monetary Policy and Trade this week. In many ways, the U.S. mortgage market is unique. The ubiquity of the 30-year fixed-rate mortgage, a standard mortgage product here, is unparalleled elsewhere. While a 30-year...
The chairman of the House Committee on Oversight and Government Reform wants the Federal Housing Finance Agency to explain why it hired two outside law firms in a massive legal action to recover losses suffered by Fannie Mae and Freddie Mac on their investments in non-agency MBS. Rep. Darrell Issa, R-CA, wrote FHFA Acting Director Edward DeMarco on Sept. 29 asking why the agency hired outside counsel from Quinn Emanuel & Sullivan and from Kasowitz Benson Torres & Freidman to initiate lawsuits against financial institutions and how much the agency is paying them. Issa posed detailed questions and requested documents regarding...
A “who’s who” list of a number of the largest and most well-known mortgage lenders in the country – including Wells Fargo, Countrywide Home Loans, Bank of America, JPMorgan Chase, PNC Bank, GMAC Mortgage Corp., Citimortgage and Suntrust Mortgage – have been accused by two whistle-blower types of charging U.S. military veterans illegal fees to refinance their home mortgages. According to the accusations, made in a complaint unsealed in federal court in Atlanta late last week, the mortgage lending entities charged refinance fees that are prohibited by the Department of Veterans Affairs and hid the charges by padding or inflating other allowable charges so they could obtain government guarantees for the mortgages, all without telling the veterans.
The Justice Department and C&F Mortgage Corp. of Midlothian, VA, agreed to a settlement that resolves allegation of lending discrimination against African-American and Hispanic borrowers of home mortgages. According to the terms of the settlement, which is subject to court approval, C&F Mortgage will revise its pricing policies, conduct employee training and pay $140,000 to settle allegations that it engaged in a pattern or practice of discrimination on the basis of race and national…
The U.S. Attorney’s office in Manhattan has entered into an agreement with the law firm of Steven J. Baum, one of the largest volume mortgage foreclosure firms in New York state, that requires the firm to pay $2 million to Uncle Sam and to extensively change its mortgage foreclosure practices. The agreement resolves an investigation into Baum’s mortgage foreclosure-related practices, specifically whether the firm, on behalf of its lender clients, filed misleading pleadings, affidavits and mortgage assignments in state and federal courts in New York.
California. The state amended a number of its mortgage loan originator licensing provisions under the California Finance Lenders Law last week, including one amendment that permits applicants who have an expunged or pardoned felony conviction to obtain a license. The underlying crime, facts or circumstances can be considered when determining whether to issue a license. Another amendment permits a person exempt from the California Finance Lenders Law to register with the Commissioner of Corporations so as to sponsor one or more individuals required to be licensed under the SAFE Act if specific requirements are met.
Federal Housing Finance Agency. OIG Finds Room for Improvement. The FHFA recognizes how important it is to oversee Fannie Mae’s and Freddie Mac’s default-related legal services, but it needs to improve its capacity to identify new and emerging areas of risk, according to a new report released by the agency’s Office of Inspector General. Additionally, “FHFA does not have a continuous supervision plan or detailed examination guidance to govern its oversight of Fannie’s Retained Attorney Network, and it had not accomplished any targeted examinations of the RAN until it initiated a special review in late 2010, which has not yet been published,” the OIG said. Moreover, “FHFA also has not developed formal policies to address poor performance by law firms that have relationships – either directly through contract or through its loan servicers – with both enterprises to ensure that information is shared.”
New issuance of mortgage- and asset-backed securities faltered in the third quarter, although production levels were gaining strength in September. A new Inside MBS & ABS analysis reveals that $330.12 billion of ABS and residential MBS were issued during the third quarter, a decline of 6.3 percent from the previous three-month period. The surprisingly tepid increase in residential MBS issuance was not nearly enough to offset a substantial drop in non-mortgage ABS activity. Non-mortgage ABS issuance fell 43.4 percent from the second to the third quarter, sinking to $24.84 billion and reversing the very...(Includes one data chart)
Some SWFs in other countries have extensive ownership interests in major corporations and sweep much of their profits into state coffers.
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