The volume of CMBS conduit loans liquidated in January spiked sharply, jumping 51% from December's reading, according to Trepp data.

Mortgage application activity slipped 2.9% in the week ending Jan. 27 with the Refinance Index declining 3.6% to 4113.8.

To facilitate “streamline” refinancings, the Federal Housing Administration (FHA) will no longer rank lenders based on the performance of those loans in its Neighborhood Watch system.

The Federal Housing Finance Agency (FHFA) has announced that investors interested in its Real-Estate Owned (REO) Initiative may “pre-qualify” to establish eligibility to bid on transactions in the initial pilot phase as well as subsequent phases.

As if new capital requirements penalizing risky asset-backeds weren't enough, banks may soon have to pay higher deposit insurance assessment fees relative to the riskiness of the ABS they hold on their books. This further challenges their participation in the securitization market.

The Maiden Lane and Sequoia transactions may not herald the return of a vibrant RMBS market anytime soon, but they do indicate significant demand for bonds at nearly opposite ends of the RMBS market.

Although American Securitization Forum (ASF) conferences are usually more U.S.-centric, this year's ASF 2012 had more of a global focus.

The notion of widespread principal reduction for underwater borrowers has gained new currency since the beginning of the year. In addition to articles in the popular financial press, the Federal Reserve's recent white paper on housing devoted a section to discussing the concept of "Loan Modifications with Principal Reduction." Nonetheless, the concept of aiding middle-class homeowners through principal reduction is politically tempting, and political pressure to "do something" (evidenced by another mass refinancing plan proposed in President Obama's State of the Union address) is intensifying. However, the experience of HAMP and other initiatives suggests that a broad program to reduce the loan balances of underwater borrowers held or guaranteed by the GSEs would be extremely expensive, ultimately ineffective and potentially counterproductive.

Five years after the financial crisis, the first wave of lawsuits filed by investors seeking to recover losses on MBS is still slogging its way through the courts, and, for many, the clock is ticking. The bulk of cases to date were brought under federal securities law; most were filed in 2007 and 2008 and face a two-part statute of limitations: one year from discovery and three years from the date of issuance of the securities.

There were 5,119 registrants at ASF 2012 - an impressive show of strength considering the issuance tally for certain market segments. But let's not forget: there've been only four Jumbo RMBS in the last three years.

In January, Fitch Ratings put out a report that highlighted ratings volatility in securitizations that are retained by European originators, primarily to use as collateral for funding with the European Central Bank (ECB).

In his Jan. 24 State of the Union address, President Obama stated that he was sending to Congress a plan that gives responsible homeowners the chance to refinance into historically low rates. He said that through this prospective program, homeowners can save roughly $3,000 per year on their mortgage.