Among the strongest industry rationales for a national mortgage servicing settlement was that it would break the legal stalemate over a huge backlog of delinquent loans. Banks would give principal writedowns to eligible borrowers and confidently foreclose on the rest, allowing the housing market to move on.

It's tempting to ignore Moody's bank downgrades, which are affecting the ABCP market (see story). They were late, heavily broadcast in advance and came from an organization with a lot to prove after missing key elements of the credit crisis.

Santander Consumer USA plans to sell a $1.4 billion auto ABS under its Santander Drive Auto Receivables Trust 2012-4.

The housing slump will continue as student loan debt rises, according to analysis from the National Association of Home Builders.

The European Covered Bond Council (ECBC) stated that it welcomed yesterday’s announcement by an investment banking group that these institutions are committed to helping ensure the successful launch of the ECBC Covered Bond Label.

A federal judge from the the U.S. District Court, Southern District of New York yesterday approved a $40 million settlement in an MBS class action lawsuit against individuals formerly affiliated with Lehman Brothers Holding. The company went bankrupt in September 2008.

The mortgage servicing industry has lost the benefit of the doubt with judges, regulatory agencies and attorneys representing debtors, and according to a panel of industry experts, proper documents and filing procedures are a critical tool for buyers and sellers to make the most of investment opportunities in distressed and delinquent mortgage portfolios.

Moody’s Investors Service downgraded several key U.S. banks late Thursday, impacting the ABCP operations of these banks.

Fitch Ratings thinks that the Federal Housing Finance Agency’s (FHFA) plans to clarify the rules on putback requests might be positive for the U.S. housing market if it leads to lending beyond the “pristine” borrower profile.

Six out of 10 homeowners who received a loan modification stopped paying their mortgage again after 18 months, but there may be a modest silver lining buried in the high recidivism rates.

Full-service loan advisor DebtX has announced that it plans to sell more than $358 million of participations, loans, and leases from the Tennessee Commercial Bank receivership on behalf of the Federal Deposit Insurance Corporation (FDIC).