RMBS

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.

Fitch Ratings has lowered Washington Mutual Covered Bond Program's outstanding €4 billion mortgage covered bonds to 'AA-' from 'AA' and placed them on Rating Watch Negative.

Assured Guaranty posted a small profit for the first quarter of 2012 and on Thursday announced a deal with Deutsche Bank over soured MBS.

The government controlled Ally Financial Monday morning said its board has voted to place Residential Capital into Chapter 11 bankruptcy protection while it finalizes a deal to sell substantially all of its assets to Nationstar Mortgage for $4 billion.

Third-party review firm Allonhill has responded to a letter from the Office of the Comptroller of the Currency (OCC) telling the firm that it will no longer be able to continue its file review in the Independent Foreclosure Review.

MBIA lost more than a half billion dollars in the 1Q12. The company’s adjusted pre-tax loss was $548 million in the quarter, compared to a $25 million profit in the first quarter of 2011. Its adjusted book value slipped to $32 a share from $34.50.