RMBS

Originators of private student loans can't seem to catch a break. Two years ago, the federal government stopped guaranteeing these loans, leaving them unsecured; more recently, there's been a push in Congress to make student loans dischargeable in bankruptcy. The loans are also attracting scrutiny from the recently empowered Consumer Finance Protection Bureau.

Brazil's housing market boom continues to make headlines. From January 2008 through April 2012, home prices in Sao Paulo and Rio de Janeiro jumped 135% and 169%, respectively, according to the FipeZap Index, which tracks prices every month in the country's seven biggest cities.

Dealmakers, issuers and investors in Latin American structured finance are often quick to point out that they've been spared the worst brutalities of the global financial crisis and the more recent sovereign debt anxiety in Europe, with the exception of the nonbank real estate sector in Mexico.

Newly initiated foreclosures by the Federal Housing Administration (FHA) jumped 247% in April from a year earlier, while the overall number of foreclosure starts fell 3.1% in the same period.

The shadow banking system is down but not out. That's the conclusion reached by the Deloitte Center for Financial Services in a new report that examines the scope and the relevance of a sector that has received its fair share of blame for causing the financial crisis.Deloitte says that assets controlled by the shadow banking system — including ABS and MBS —have declined by more than 50% in the last four years, to $9.53 trillion at Dec. 31. As a result of this sharp decline, the traditional banking sector that four years ago was smaller than the shadow banking system is now roughly $8 trillion larger, according to Deloitte.

The Consumer Financial Protection Bureau Thursday afternoon served official notice that it is seeking comment on a range of issues — including the cost of potential litigation — and whether debt-to-income ratios should be used to determine a borrower’s “ability to repay” a residential loan.

Freddie Mac reported 30- and 15-year fixed mortgage rates set new lows in the week ending May 31.

The Consumer Financial Protection Bureau (CFPB) has decided to delay the issuance of a final ‘Qualified Mortgage’ (QM) rule until after the Nov. 6 elections, industry officials told ASR sister publication National Mortgage News.

The president and chief executive of the Mortgage Bankers Association (MBA) David Stevens is stepping down after one year to become the president of SunTrust Mortgage.

Mortgage application activity eased 1.3% in the week ending May 25 with both refinancing and purchase activity lower.