RMBS

The increase in U.K. covered bonds shows a return of investor demand driven by an appetite for non-Euro denominated bonds, Bank of America Merrill Lynch analysts said.

Delton de Armas, previously CFO of Taylor, Bean & Whitaker (TBW), pleaded guilty today to making false statements and conspiring to commit bank and wire fraud.

Wells Fargo is already contacting borrowers who might be eligible for a principal reduction as required under the $25 billion robo-signing settlement with state and federal law enforcement agencies.

The consumer default rate on first mortgages declined by six basis points in February from January and by 43 basis points when compared with February 2011, the S&P/Experian Consumer Credit Default Indices showed.

The Federal Housing Finance Agency (FHFA) had sharp words early this week for state and local governments that have passed laws meant to help homeowners facing risk of foreclosure.

There is a significant disconnect in the Jumbo mortgage between the primary market and the secondary market. Since the 2008 financial crisis the once-thriving and vibrant non-agency, Jumbo MBS market has evaporated. Despite some attempts to resuscitate the Jumbo secondary market the gulf between investor needs and what consumers want remains large. Most of us are familiar with the expression “the elephant in the room.” Wikipedia defines this expression “as an English metaphorical idiom for an obvious truth that is being ignored or goes unaddressed.” Wikipedia goes on to say “the idiomatic expression also applies to an obvious problem or risk no one wants to discuss.” The application of this expression perfectly describes the dysfunctional gap between the terms investors want and what originators representing consumers need.

Mortgage bondholders are threatening legal action over the $25 billion national mortgage settlement, which will give the five largest servicers credits for principal writedowns that the bondholders may take.

Not only is PennyMac cranking up its correspondent lending platform, but the publicly traded REIT also plans to be an aggressive bottomfisher in the mortgage servicing rights arena.According to a recent investor presentation filed with the Securities and Exchange Commission, PennyMac said it now has the ability to scale its servicing platform up to $40 billion of “sub-performing” loans within 12 months.

Fannie Mae has priced its third multifamily DUS REMIC of the year, a $767 million deal that is notable in that it is the first ever to have separate tranches backed by both seven-year and 10-year collateral.

The U.S. Treasury Department has completed the orderly wind-down of its agency-guaranteed MBS portfolio. The Treasury’s MBS portfolio had a positive return of $25 billion.