RMBS

Bank of America Corp. has begun potential settlement discussions with large institutional investors who bought MBS that later underperformed, causing losses at these entities, according to a report in The Wall Street Journal.

Moody's Investors Service analysts said they don't believe Countrywide, now part of Bank of America Corp., routinely failed to transfer mortgage notes to trusts when the lender securitized loans.

Rep. Randy Neugebauer, who will chair the House Financial Services oversight subcommittee next year, is demanding answers about how Fannie Mae's and Freddie Mac's participation in a loan modification program would benefit taxpayers.

Ginnie Mae issuers securitized $34.4 billion of government guaranteed residential mortgages in November, down 3% from the prior month.

The decline in foreign investor holdings of agency MBS continued in October, contributing to an overall year-to-date decline through that time of $57 billion, according to a Credit Suisse strategist.

The California Public Employees' Retirement System (CalPERS) this week suspended its mortgage program, citing rising delinquencies and declining usage by its target audience: state workers. The program's administrator is Citigroup.

Despite coming to market at what has traditionally been a quieter time of the year, the recent spate of government-backed securitizations to hit the market have found a healthy buyside appetite.

Differences in judicial and non-judicial foreclosures over the past several months have meant some securitized private-label subprime/Alt-A mortgages made to borrowers in the what is still considered a relatively weak — though improving — California market, for example, are actually exhibiting better performance in some ways as a group than their counterparts in the relatively stronger New York market.

The Senate Banking Committee Tuesday afternoon approved the nomination of Joseph Smith to be the next director of the Federal Housing Finance Agency (FHFA) by a 16-6 vote. However, several Republicans are planning to delay his confirmation by the full Senate.

Moody's Investors Service said yesterday that the "intense spotlight" that was placed on mortgage servicers following the disclosure of irregularities in foreclosure documentation will persist into next year.