RMBS

Investors looking to block the $8.5 billion settlement of claims related to losses on Bank of America MBS have moved the case to federal court, a Reuters report indicated.

The August remittance reports showed default rates at 9.4, 9.7, 10.5, and 11.0% CDR for the 06-1 through 07-2 indices. These, according to Bank of America Merrill Lynch analysts, represent changes of -0.5, -1.5, -0.7, and +0.3 points, respectively.

There is an increased likelihood of a government action to spur refinancings, JPMorgan Securities analysts noted in a report released yesterday.

3Point Asset Management, Irvine, Calif., has hired Ron Millar as AVP in charge of sales and trading.

Warren Buffett's $5 billion public vote of confidence in Bank of America, happily for him, does not require actual confidence. The terms of the legendary investor's deal, which grants Buffett's Berkshire Hathaway $5 billion in perpetual preferred stock and warrants to buy BofA stock at just over $7 a share, include no lockup period.

Senator Barbara Boxer, D-Calif., is pressing the GSE regulator to adopt several changes to the Home Affordable Refinancing Program (HARP), allowing Fannie Mae and Freddie Mac to refinance more underwater borrowers.

Freddie Mac purchased $21.7 billion of mortgages from its seller/servicers in July, its worst acquisition month of the year and only about half of what it bought in January.

The Mortgage Bankers Association (MBA) is being inundated by member complaints about the Federal Housing Administration's (FHA) policy decision to extend the forbearance period for unemployed homeowners to 12 months.

A roughly seven basis point increase in 30-year weekly rates and gains in bond yields from recent record lows could dampen refinancing applications a bit unless they motivate a significant group of fence-sitting borrowers to act.

American Realty Capital Properties (ARCP), New York, said it expects its initial public offering to close on Sept. 6, with trading of the company's common stock to start the following day on the NASDAQ Capital Market, that exchange's tier for small cap stocks.