It could cost Goldman Sachs between $800 million and $1.25 billion to resolve government claims that it sold faulty mortgage-backed securities to Fannie Mae and Freddie Mac leading up to the financial crisis, according to recent reports. Goldman Sachs is currently negotiating with the Federal Housing Finance Agency, which has recovered approximately $16.1 billion in agreements with other banks with respect to legacy MBS sold to the GSEs.In September 2011, the FHFA filed 18 separate lawsuits against some of the nation’s biggest banks, accusing them of misrepresenting some $180 billion in toxic subprime MBS.

Freddie Announces 9th Multifamily Securities Offering of 2014, K-F04. Freddie Mac announced this week a new offering of Structured Pass-Through Certificates or K Certificates, backed exclusively by LIBOR-based, floating-rate multifamily mortgages with five- and seven-year terms. The GSE expects to offer approximately $1.2 billion in K Certificates, which priced on Aug. 6 and is expected to settle on or about August 25. This is Freddie’s ninth K Certificate offering this year. The GSE said it also reached an important milestone of securitizing more than $80 billion in multifamily mortgages through its K-Deal program.

Fannie Mae and Freddie Mac reported a combined $5.0 billion in net income during the second quarter of 2014, down 46.2 percent from the first three months of the year. Compared to the first half of 2013, GSE profits were down nearly 82 percent, though both companies posted strong earnings during the three-month period ending June 30, 2014. Both GSEs are coming off a banner 2013 when each company’s earnings were super-charged by several one-time items – including the capture of each company’s deferred tax allowance, and numerous non-agency lawsuit settlements.

Morgan Stanley is set to issue its first jumbo mortgage-backed security since the financial crisis.

Mortgage origination volume was up in all three major production channels during the second quarter of 2014, according to a new Inside Mortgage Finance analysis and ranking. Retail originations remained the biggest source of new business, accounting for 61.0 percent of second quarter production. Total volume in the channel – which includes consumer-direct lending and traditional branch-office production – increased by 27.7 percent to an estimated $180 billion during the second quarter. Retail’s increase was higher than the overall 25.5 percent growth in total originations, nudging its share of the market slightly higher. Third-party originations were...[Includes four data charts]

As Fannie Mae and Freddie Mac buyback demands have tapered off, lenders continue to face aggressive government efforts to indemnify the FHA for losses, but they do have options available to them that can work in their favor. During a webinar sponsored last week by Inside Mortgage Finance, Amanda Raines, a partner with the BuckleySandler law firm in Washington, DC, emphasized that FHA indemnification demands have continued this year, with an aggressive use of the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act. That has led...

Fannie Mae, Freddie Mac and Ginnie Mae each recorded double-digit increases in single-family business in July, marking the fourth straight monthly gain, according to a new ranking and analysis by Inside MBS & ABS, an affiliated newsletter. The three produced $85.3 billion of single-family mortgage-backed securities last month, an 11.6 percent increase from June’s volume. The biggest increase was at Fannie, where production was up 12.6 percent for the month. The steady gains in production starting in April have not been...

Production of new agency mortgage-backed securities increased by 11 percent over June, according to a new Inside MBS & ABS ranking and analysis.

Shortly before Congress left town for its annual summertime break, Sen. Mary Landrieu, D-LA, introduced S. 2641, legislation to amend the Truth in Lending Act to provide that residential mortgage loans held in portfolio would be deemed qualified mortgages for purposes of satisfying the requirements of the Consumer Financial Protection Bureau’s ability-to-repay rule.

Freddie Mac sold a $659 million package of “deeply” delinquent loans from its investment portfolio – a first for the government-sponsored enterprise.