RMBS

Most of a lawsuit that accuses JPMorgan Chase of misleading mortgage investors before the meltdown may advance, a federal judge in Manhattan has decided.

PennyMac Mortgage Investment Trust was considered one of the runner-up bidders on a $70 billion package of mortgage servicing rights that was sold to JPMorgan Chase by MetLife.

Citigroup Global Market said in a report today that approzimately 48,500 loans with about $16.3 billion in unpaid principal balance in flood affected areas may not have the right insurance coverage, making them vulnerable to losses.

In a short note from this morning, the rating agency said it does not expect major changes in the short term resulting from the election, although it can affect the status of residential mortgage reform and covered bond legislation.

As loan losses mount, the Federal Housing Administration will issue a financial analysis next week setting the stage for what could be its first draw from the U.S. Treasury.

Goldman Sachs is asking the U.S. Supreme Court to overturn a lower-court decision involving RMBS the company said would cost financial firms tens of billions of dollars.

Nearly $700 billion of mortgage servicing rights — or 7.6% of the housing receivables marke — are in some stage of auction or sale.

Although trade group officials and certain lobbyists are hearing reports that the rule might be out before November’s end, others believe mid- to late December is more likely.

The market has been focusing on the U.S. Presidential elections since the results will affect outlooks for different key issues including the fiscal cliff, BofA Merrill analysts said.

MetLife Bank said late Friday it will sell its $70 billion residential servicing portfolio to JPMorgan Chase for an undisclosed sum.