RMBS

Western Asset Mortgage Defined Opportunity Fund’s public-private investment fund or Master Fund was terminated on July 15.

The U.S. Department of Housing and Urban Development (HUD) will now be accepting applications for qualified entities to purchase severely troubled loans that were formerly insured by the Federal Housing Administration (FHA) through the Distressed Asset Stabilization Program.

Syncora Holdings announced on July 17 that its unit Syncora Guarantee had settled claims related to RMBS with Countrywide Financial Corp., Bank of America Corp. and their affiliates.

It appears that Redwood Trust—until recently the only securitizer of jumbo mortgages in the nation—has company in the space: Credit Suisse First Boston. But don’t pop the champagne quite yet. It’s not what you think.

If several California cities move ahead with a plan to seize underwater mortgages, they could end up paying more for the loans they expected, according to a legal expert retained by the Securities Industry and Financial Markets Association (SIFMA).

Another report of new lows in mortgage rates led to a 22% surge in the MBA's Refi Index to ~5331 for the week ending July 13, just under its mid-June high since April 2009 of 5386. As a percent of total application activity, refinancing share rose to 80.1% from 77% in the prior report.

Wells Fargo's mortgage servicing rights portfolio could have an impact on the bank's capital ratios under the Basel III requirements in the not-so-distant future when interest rates rise, a report from Fitch Ratings warns.

Fitch Ratings has switched to predicting gains in new home prices for 2012 instead of modest declines, due to "overt price increases and mix issues." The average single-family new home price should improve by 4.25% and the median should rise by 4.5% in 2012.

The increase in house prices in April was so widespread that 97% of the nation’s 579 metropolitan statistical areas registered an uptick in values from the month prior, according to Lender Processing Services (LPS).