RMBS

PHH Corp. posted a $42 million loss in the third quarter after marking down the value of its servicing portfolio by $217 million.

Mezzanine-level subprime bonds securitized by Texas loans are likely to have higher valuations than mezzanine subprime bonds without Texas exposure.

BofA Merrill analysts expect the national S&P Case Shiller index to increase 5% this year, up from an initial forecast of a 2% gain the bank called in August.

In its weekly report, Freddie Mac reported 30-year fixed mortgage rates averaged 3.40% from 3.39% last week. Since the end of September, rates have held to a narrow range of 3.36% to 3.41%.

Fannie Mae reported weaker earnings in the third quarter – including a loss on its single-family business – but also announced that its MBS market share set a new all time record: 52%.

As expected, superstorm Sandy in the northeast contributed to a 5% decline in mortgage application activity in the week ending Nov. 2. The Refi Index fell 5% to 4244.3, while the Purchase Index was down 4.8% to 176.4.

Speeds increased more than projected in October due primarily to much stronger HARP-related activity than was expected -- particularly from Bank of America.

Bank of America Merrill Lynch analysts examined specific issues that now concern ABS players, namely: the fiscal cliff and budget policy; change in Fed leadership and policy; and the government's housing policy.

Regulators are expected to miss a global deadline to finalize Basel III capital and liquidity requirements by yearend.

After losing out in a bankruptcy auction of former GMAC's ResCap mortgage servicing assets, the company insisted that there are plenty of other, potentially better portfolio acquisitions waiting in the wings.