RMBS

Residential Capital, an Ally Financial subsidiary, cannot be sued in a class action law suit where the proposed class comprises "large, institutional and sophisticated investors" that have the financial resources as well as incentive to pursue their own claims, Judge Harold Baer ruled in the case called New Jersey Carpenters Health Fund v. Residential Capital LLC.

The National Credit Union Administration (NCUA) late this week sold another $1.5 billion of its NCUA Guaranteed Notes, bonds whose cash flows ultimately come from toxic MBS owned by now defunct corporate credit unions.

The 50 state attorney generals continue to work on a settlement with the top five mortgage servicers, according to market reports.

The primary market for European covered bonds saw substantial volume sold in the first month of the year.

Bank of America Friday morning reported a fourth quarter loss of $5 billion on its residential finance and insurance unit, citing $4.1 billion in representation and warranty costs tied to buybacks from Fannie Mae and Freddie Mac. In the year ago quarter its mortgage loss was $1 billion.

When it comes to the future of mortgage securitizations, it's safe to say the entire business is up for grabs, but nowhere is that more apparent than in the market for issuing bonds backed by "nonqualified" residential loans.

Gains related to principal investments held by certain consolidated real estate funds contributed to relative improvement in Morgan Stanley’s earnings for 4Q10 and the full year in 2010.

Mortgage Industry Advisory Corp., New York, is offering for sale a $79 million package of residential servicing rights tied to Fannie Mae MBS.

Acting Comptroller of the Comptroller John Walsh cautioned Wednesday that regulators should not take a one-size-fits-all approach to applying pending Basel III capital standards to U.S. banks.

Mortgage rates were mixed in the week ending Jan. 20. According to Freddie Mac's weekly survey 30-year fixed rates rose three basis points to 4.74%, after two weeks of declines. Meanwhile, 15-year fixed rates slipped three basis points to 4.05%.