RMBS

Moody’s Investors Service downgraded Portugal by four notches to 'Ba2' from 'Baa1' with a negative outlook yesterday.

Two separate MBS-related regulatory settlements involving hundreds of millions of dollars restitution to investors were seen late last month and the Securities and Exchange Commission (SEC) indicated similar cases would remain a priority for it in the future.

Moody’s Investors Services has downgraded the servicer quality (SQ) ratings of JPMorgan Chase and Chase Home Finance. The collective ratings in question are as primary servicer of prime residential mortgage loans from ' SQ1 ' to ' SQ2 ’, and as primary servicer of subprime residential mortgage loans from SQ1 to SQ2. Both will remain on review for possible further downgrade.

As federal agencies work on creating a new servicing fee structure, the Mortgage Bankers Association (MBA) is recommending they consider a reserve account that would be used to pay the higher costs of servicing delinquent loans.

FG Solutions International has formed a new ABS trading desk in North America to expand service offerings for investors and traders.

Not surprisingly mortgage rates were higher in Freddie Mac's latest survey due to last week's sharp sell-off as risk taking was favored. The 30-year fixed mortgage rates averaged 4.60% with an average 0.7 point in the week ending July 7, up nine basis points from last week.

In a few weeks the Consumer Financial Protection Bureau (CFPB) officially will open its doors, but it will be “months” before the agency promulgates any new servicing regulations, according to a top official there.

Federal housing regulators on Wednesday said they are lowering the conforming loan limit for Jumbo loans – the maximum loan they will buy from lenders – by almost 17%.

Lender Processing Services (LPS) CEO and president Jeffrey Carbiener is stepping down effective immediately for what the company said are significant health-related reasons.

Even if Congress and the Obama administration allow federal loan limits to fall back to pre-crisis levels in October, as expected, the limits will still be higher than they need to be, professors at The George Washington University School of Business have determined.