RMBS

The private market could struggle to meaningfully absorb the capacity GSEs currently provide to the U.S. housing market, said Fitch Ratings in a report today on the housing finance reform proposal.

Financial Services Committee Chairman Spencer Bachus has scheduled a hearing and markup for early March to consider four bills that would terminate government-backed loan modification/foreclosure prevention programs that he calls "failed and ineffective."

Mortgages rates fell in the week ending Feb. 24 as yields declined on a flight to quality.

Single-family existing home sales rose 2.4% in January following a 12% jump in December, according to new figures compiled by the National Association of Realtors (NAR).

Though it's too early to declare that mortgage delinquencies are on the way down permanently, "We are seeing some bright spots," Anthony Renzi, Freddie Mac executive vice president of single family portfolio management, said during a press briefing at the Mortgage Bankers Association's servicing conference in Dallas Wednesday morning.

The Federal Housing Finance Agency (FHFA) Wednesday morning laid out its options for restructuring mortgage servicing compensation, including the possibility of eliminating the 25 basis point minimum paid on performing loans.

Yearend financial reports by several Federal Home Loan Banks (FHLBs) showed these "other" housing GSEs are returning to profitability, while experiencing a lower level of losses on their holdings of private-label MBS.

The average contract interest rate for 30-year fixed rate mortgages dropped 12 basis points to 5.0%, according to the Mortgage Bankers Association (MBA) survey.

Dechert hired Lawrence Berkovich as counsel in its finance and real estate (FRE) group. He was most recently special counsel at Cadwalader, Wickersham & Taft.

Wells Fargo, which has emerged as a constant seller of delinquent mortgages, is offering roughly $350 million worth of whole loans, some of which are nonperforming, according to investment banking sources.