RMBS

Flagstar Bancorp has revised its financial results from a $66.8 million profit in the fourth quarter to a $94.2 million loss due to lawsuits by MBS insurers.

Analysts at Bank of America Merrill Lynch see value in Australian RMBS for global investors, despite the recent downgrades of junior notes by Moody’s Investors Service.

Moody's Investors Service chief executive told investors Friday he is unaware of plans by federal and state officials to sue the company for allegedly misleading investors in the run-up to the housing crisis.

MBS mostly lagged in both rallies and sell-offs in the week ended Feb. 8 amid concerns about increased originator supply and convexity-related selling.

Morgan Stanley announced a reshuffling of roles for managing directors in the banks securitized products group. The changes will help the bank develop its new issue securitization franchise.

Morgan Stanley Investment Management's new Global Mortgage Securities Fund will invest in mortgages and securitized debt instruments issued by government agencies and private institutions, the bank said this week.

Peter Albano is joining Oppenheimer & Co. Inc. as head of taxable fixed-income sales, overseeing mortgage-backed securities as well as high-grade corporate credits and institutional emerging markets.

U.S. District Judge Jed Rakoff ruled that Flagstar Bancorp violated agreements with Assured Guaranty Municipal to follow its own underwriting guidelines; he ordered Flagstar to pay Assured $90 million.

The Justice Department is suing credit rating agency Standard & Poor's for allegedly ignoring their own standards and rating mortgage investments much higher than they should have been in years leading up to the financial crisis.