Securitization

Ambac Financial Group, the holding company for bankrupt bond insurer Ambac Assurance, has agreed to settle a lawsuit claiming it misled shareholders about the risks the company took on insuring subprime mortgages.

The recovery prospects for second-lien holders in residential foreclosures keep looking dicier.

John Daurio, chairman and CEO of Kondaur Capital, is stepping down as the day-to-day manager of the nonperforming loan (NPL) investing firm, according to officials close to the situation.

Reported incidents of subscriber-verified mortgage fraud and misrepresentation by industry professionals have decreased from 2009 to 2010, according to a recent report by the LexisNexis Mortgage Asset Research Institute. Actual incidents, however, as opposed to reported, are believed to be up.

After months of stalemate, the state attorneys general have proposed new terms to the top five mortgage servicers that drop some controversial provisions of their first attempt at a settlement, including a push to force banks to reduce principal on thousands of mortgages.

A CLO managed by BlackRock Financial Management, BMI CLO I, is expected to price this week, according to sources.

An over-concentration of subprime MBS caused the failure of Members United Corporate Federal Credit Union, the one-time $14 billion corporate that is restructuring itself, National Credit Union Administration (NCUA) said in a new report issued last night.

Aside from Ally Bank's auto deal, Hyundai Capital America (HCA) is in the market with a $1 billion prime auto loan ABS called Hyundai Auto Receivables Trust (HART) 2011-B.

The Brazilian Central Bank’s efforts to rein in consumer lending growth are bearing fruit (see table below), a development Moody’s Investors Service sees as a credit positive.

Residential servicers completed 36,400 Home Affordable Modification Program (HAMP) modifications in March, a 39% jump from February, according to a new report from the Treasury Department.

Home values showed the sharpest quarterly declines since 2008, falling 3% in the first quarter this year, according to Zillow’s real estate market report.

The Federal Deposit Insurance Corporation (FDIC) today said Chairman Sheila Bair's official departure will be effective July 8.

A group of mortgage bondholders are seeking to get the defunct H&R Block's subprime lending unit Option One Mortgage to buyback billions in failed mortgages, according to a Reuters report today.

Fannie Mae on Friday reported a first-quarter loss of $8.7 billion after paying preferred dividends, as credit-related expenses spiked.

Markit is launching on May 12 its new Markit MBX, Markit IOS and Markit PO indices based on GNMA agency pools issued in 2010.

MBIA Insurance has filed a motion in the New York State Supreme Court seeking documents from Credit Suisse about RMBS it insured.

Three big banks sought Friday to burst fears about a business lending bubble. Top executives with Comerica, Fifth Third Bancorp and U.S. Bancorp assured investors at an RBC Capital Markets conference in Boston that corporate lending remains safe and lucrative.

As the mortgage industry girds for life under the Dodd-Frank Act, two legislated products are capturing bankers' attention.

Mark Oman, a senior executive at Wells Fargo who helped build the bank’s mortgage business into one of the most competitive in the industry, announced that he will retire by yearend.

Redwood Trust, Mill Valley, Calif., earned $18 million in the first quarter, a 61% decline from the same period a year ago as lower net interest revenue and negative valuation adjustments took a bite out of its performance.