RMBS

Larry Goldstone, once a top player in the Jumbo and "super" Jumbo market through his now defunct firm Thornburg Mortgage, is trying for a comeback in the business.

Provident Funding Associates, the second largest privately held nonbank mortgage lender in the U.S., this week filed a registration statement with the Securities and Exchange Commission to create a publicly traded REIT by raising $300 million in capital.

The Federal Reserve Bank of New York has received a formal offer from American International Group (AIG) to repurchase the assets in Maiden Lane II, LLC (MLII).

Prospect Mortgage said it has started offering prime Jumbo loans with balances of up to $2 million. It plans to sell these loans to firms aiming to tap the private-label MBS market.

A new £350 million ($565.4 million) U.K. RMBS deal for the Skipton Building Society began marketing this week, according to market reports.

Servicers are bracing for a challenging future where the way they redefine their risk-pricing measures will determine their ability to survive.

The 12 Federal Home Loan Banks (FHLBs) are joining together to boost their capital strength and hopefully stave off harsher measures the Obama administration is considering.

A proposed settlement between the five largest servicers and state and federal agencies was reportedly distributed to the largest banks and to select government officials.

Several prominent Republicans, including Sen. Richard Shelby, the Banking Committee's top Republican, sharply criticized a proposed settlement between the five largest servicers and state and federal agencies, arguing that the government authorities were trying to usurp Congress' role.

Banks could turn to covered bonds as a possible solution to balance sheet woes, industry sources said.