RMBS

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.

In the wake of Hurricane Sandy, delinquency rates are expected to rise in RMBS deals.

Volume in MBS trading was at less than two-thirds of normal as a result of thinly staffed trading desks and the market shutdown.

Citgroup Global Markets said that the number of RMBS delinquencies that eventually default resulting from Hurricane Sandy will mostly depend on how much damage will be covered by insurance.

Ally Bank is vowing to carry on in the residential finance sector, albeit in a reduced role.

Redwood Trust, the most active securitizer of Jumbo loans in the nation, earned $40 million in the third quarter – double of what it took in 2Q12 – and unveiled plans to ramp up non-agency loan production over the next 12 months and beyond so it can securitize $300 million or more each month.