RMBS

False information provided to a regulating body considering the division of bond insurer MBIA into two parts should invalidate the split, according to the attorney for the banks suing MBIA in a hearing Tuesday.

The Federal Housing Administration (FHA) — which holds title to 700,000 seriously delinquent mortgages — plans to ramp up its single-family nonperforming loan sale efforts, according to housing commissioner Carol Galante.

Fitch Ratings has downgraded GMAC Mortgage's U.S. residential mortgage servicer ratings.

Allonhill, a mortgage due diligence provider that two weeks ago lost a consulting contract with the Office of the Comptroller of the Currency, has given layoff notices to dozens of employees, according to industry consultants who were briefed on the matter.

Auriga USA has boosted its fixed-income U.S. sales and trading operations with various new product lines.

The Fourth Circuit Court of Appeals sided with the Consumer Financial Protection Bureau’s (CFPB) reasoning in an amicus brief and broke ranks with other courts in ruling on a borrower’s right to rescind and void a mortgage contract.

Seventeen RMBS institutional investors represented by Gibbs & Bruns and Ropes & Gray have reached an agreement with Residential Capital (ResCap) and its affiliated debtors.

On the first day of a trial in a lawsuit brought by banks to undo bond insurer MBIA’s split into two companies, the judge made clear she wanted the proceedings to focus on legal rather than factual issues.

Newcastle Investment Corp. said it will be a partner in Nationstar’s plan to purchase $374 billion of servicing rights from Residential Capital Corp. by investing upwards of $300 million in the “excess” servicing strip on the deal.

Early today, government-controlled Ally Financial's unit Residential Capital (ResCap) and fifty of its mortgage subsidiaries filed for Chapter 11 protection through a pre-packaged bankruptcy plan.