RMBS

As commercial banks weigh the effects of Basel III on mortgage servicing rights and capital, nonbank residential servicers are posting the strongest growth rates in the industry.

Rates have dropped 11 basis points over the past two weeks and are within six basis points of July's record low 3.49%.

The Dusseldorf, Germany-based bank claims Citigroup and Goldman Sachs made "material misrepresentations" about the loans backing the securities

Increased adverse selection in pre-2005 RMBS mortgage pools has led to higher delinquencies for pre-2005 loans, according to a Fitch Ratings report.

A downpayment requirement in the ‘Qualified Residential Mortgage’ rule will create a barrier to homeownership for low- and moderate-income families, six consumer groups said.

Federal regulators are seeking public comment on their new Basel III capital proposals and there are hints they may be changing their stance on private mortgage insurance when it comes to calculating risk weightings for residential mortgages.

Mortgage application declined 2.5% for the week ending Aug. 31 despite easing in mortgage rate levels.

The continued price growth in most markets should lead to increased recovery values for non-agency MBS investors, Bank of America Merrill Lynch analysts said.

California Reinvestment Coalition complained that the top five mortgage servicers are stressing short sales under the national mortgage settlement instead of keeping borrowers in their homes.

Walter Investment Management Corp. has agreed to buy Reverse Mortgage Solutions in a deal worth $120 million.