UBS, one of the first of the 18 big banks named in lawsuits brought by the Federal Housing Finance Agency two years ago in connection with non-agency MBS purchased by Fannie Mae and Freddie Mac, announced this week that it is seeking to settle with the FHFA following an adverse federal appeals court ruling against the Swiss and other defendants. In announcing its preliminary second quarter 2013 results, UBS said it has reached “an agreement in principle” with the FHFA to settle claims against its subsidiary UBS Americas related to residential MBS offerings between 2004 and 2007. UBS did not specify...

The Financial Industry Regulatory Authority will begin disseminating information for so-called specified-pool MBS issued by Fannie Mae, Freddie Mac and Ginnie Mae, as well as securities backed by loans with Small Business Administration guarantees. The move is aimed at increasing transparency in specified pools, which represent an estimated 3,500 trades, totaling $18 billion in par value, on an average daily basis. It follows a similar effort by FINRA last year in the to-be-announced market for agency MBS. Transaction data will be circulated...

Industry groups are lauding a House Republican’s move last week to re-file a legislative countermeasure against municipalities seeking to use eminent-domain powers to acquire performing but underwater mortgage loans as a warning against localities still entertaining such a course of action. The Defending American Taxpayers from Abusive Government Takings Act, H.R. 2733, by Rep. John Campbell, R-CA, would prevent the “reckless” seizure of distressed home loans by local governments, a move that’s both legally questionable and that represents “a complete abrogation of private property rights.” “The federal government and the American taxpayer would be forced...

Wells Fargo blames regulations for ending its mortgage JVs. Meanwhile, how did the CFPB unearth its information on 'up-selling' at Castle & Cook?

Freddie Mac sold $500 million in non-guaranteed credit risk this week as part of an effort to eventually reduce the government-sponsored enterprises’ market share and help price their guaranty fees. While non-agency investor appetite for the transaction was strong, industry analysts suggest that the deal has limited usefulness for the long-term goals set by the Federal Housing Finance Agency. The Structured Agency Credit Risk Debt Notes Series 2013-DN1 included four tranches, all unrated. The two mezzanine ...

Among the top 20 lenders in the nation, PennyMac and Nationstar had the highest growth rates, according to new figures compiled by Inside Mortgage Finance.

Voting largely along party lines, the Republican-held Housing Financial Services Committee this week approved H.R. 2767, the Protecting American Taxpayers and Homeowners Act, by a 30-27 margin, advancing the measure to the House floor for consideration a mere two weeks after it was filed. The focal point of the committee’s debate was the conspicuous absence of a government mortgage guaranty to replace the backing provided for Fannie Mae and Freddie Mac mortgage-backed securities over the years. Democrats such as Massachusetts Rep. Stephen Lynch painted the GOP measure as an “ideologically extreme and dangerous bill” that would destroy the 30-year fixed-rate mortgage if signed into law as is. The bill by Committee Chairman Jeb Hensarling, R-TX, would end conservatorship of the GSEs within five years and put them into receivership, eliminate their government charter and liquidate any remaining assets...

The Federal Housing Finance Agency considers community-based lenders a “critical” component for lawmakers to consider as they move to lay the foundation for a new housing finance system, an FHFA official said during a hearing this week of the Senate Banking, Housing and Urban Affairs Subcommittee on Securities, Insurance and Investment. “As we move to reform our nation’s housing system, it is important to ensure that community-based lenders are able to fully participate in the new system,” said Sandra Thompson, the FHFA’s deputy director for the Division of Housing Mission Goals. “There should not be a significant difference between how large and small lenders are treated when securitizing residential mortgage loans.” Thompson said...

During the debate, Committee chairman Jeb Hensarling accused Democrats of protecting the status quo by defending the current Fannie and Freddie dominated regime.

Amherst Securities said the risk-share deal was structured in a way that it will likely never take a loss.