“Linking of qualified residential mortgages (QRM) in the risk-retention rules to the definition of qualified mortgage (QM) in the CFPB’s ability-to-repay rules will further deepen the divide between QM and non-QM loans in terms of pricing and availability,” said attorney Stephen Kudenholdt of Dentons LLC.

While standardization was the focus of jumbo investors, perhaps the bigger concern for participants is that most investors said they were looking to buy almost anything other than new jumbo MBS.

The auction is being held on the government’s behalf by DebtX. In total, 29,000 nonperforming loans will be offered for sale.

Peters Sack of Credit Suisse said the bank portfolio bid is currently much stronger than the economics for issuing jumbo MBS.

The Supreme Court's decision sends the defendant banks back to federal district court where they will be able to appeal at a later date should an adverse ruling directly affect them.

What if the U.S. government actually defaults on its debt – what would that do to the value of MBS and Treasuries held on the balance sheet of banks? You may not want to know the answer.

An assistant at CashCall tries to clear the air on the lender's sale. Meanwhile, the USDA mortgage program is dead, for now.

Every component in the residential MBS market was down from the second quarter, and trending lower on a monthly basis, according to Inside MBS & ABS.

A steady decline in single-family agency MBS issuance led to a 13.8 percent decline in MBS and ABS production during the third quarter of 2013, according to a new Inside MBS & ABS analysis. A total of $388.53 billion of single-family MBS were issued during the third quarter, a 15.7 percent drop from the previous three-month period. It marked the lowest quarterly output for single-family MBS since the second quarter of last year, although year-to-date production was still up 9.0 percent from the first nine months of 2012. Every component in the residential MBS market was...[Includes three data pages]

Reforms seen in the new era of non-agency jumbo MBS issuance aren’t enough to prompt significant investor participation, according to John Gidman, president of the Association of Institutional Investors. At a hearing this week by the Senate Committee on Banking, Housing and Urban Affairs, Gidman and others called for a number of changes to the non-agency market. “The fundamental structural and process weaknesses for non-agency residential MBS securitization have not been fixed in the current private-label securities market,” Gidman said. “The issuance process itself is very opaque. Ratings continue to be shopped, issuers are still incentivized to water down representations and warranties, and continued variability in structures and documentation make the market more challenging for investors and raise the costs of funding.” He acknowledged...