Securitization

Citigroup agreed Wednesday to pay $158.3 million to settle claims that its mortgage unit improperly originated Federal Housing Administration (FHA) loans, a swift reminder that the massive national mortgage deal does not insulate banks from other mortgage-related claims. The settlement of FHA claims comes less than a week after Citigroup joined the four largest mortgage servicers in a $25 billion settlement with state attorneys general and the Department of Justice. That deal covered the banks' abusive mortgage and foreclosure practices collectively known as robo-signing.Citigroup separately on Wednesday agreed to settle the FHA-related claims made in a lawsuit filed by Preet Bharara, the U.S. Attorney for the Southern District of New York, Helen Kanovsky, general counsel for the Department of Housing and Urban Development (HUD), and HUD's Inspector General David A. Montoya.

BlackRock, the investment firm headed by MBS veteran Larry Fink, recently increased its position in PennyMac Mortgage Investment Trust to 5.48%, more than double its last recorded stake.

Regulators said Wednesday they are extending the deadline for borrowers to request an independent foreclosure review under the consent orders signed by 14 mortgage servicers last April.

Nationstar Mortgage, the nation's 11th largest servicer, is in talks to buy all or parts of Aurora Loan Services (ALS), according to industry advisors close to the situation.

Fitch Ratings today released a presale on the $282 million Global Tower Partners (GTP) series 2012-1 and 2012-2.

Results of a recently-closed tender offer for structured bonds by Spain’s Catalunya Banc indicate that investors’ attachment to this paper is stronger than anticipated, at least at the prices offered by the issuer, according to a note by Barclays Capital analyst Dipesh Mehta.

Liz Frederick has been named the new managing director of Kane USA, a global provider of specialist insurance management services.

Analytics provider CoreLogic announced a new data-enhanced, appraiser-certified evaluation tool.

While the redenomination specter haunts the more financially fragile members of the eurozone, Kazakhstan has actually gone through the exercise, sparking deep losses in a local RMBS, according to a note by Moody’s Investors Service.

Refinancing activity increased just slightly in the week ending Feb. 10 as mortgage rates ticked up.

The apartment sector is projected to lead the housing market on the road to recovery, but growth in the multifamily sector will be highly uneven, industry experts said last week in Orlando.

Capital One Financial Corp. on Tuesday cleared the final regulatory approval needed to buy ING Direct USA for $9 billion after nine months of talks.

Federal officials and state attorneys general released new documents Tuesday about the $25 billion multi-state servicing settlement, but still have yet to release a final settlement term sheet.

American Credit Acceptance is planning to sell a subprime auto ABS called American Credit Acceptance Receivables Trust Series 2012-1. The 144A securitization rated by Standard & Poor's is worth $150 million.

FICO scores cover a much wider demographic than proprietary models used by ABS issuers to predict collateral performance, according to FICO Senior Director Adem Yilmaz.

The leveraged loan market is hoping to dodge yet another bullet from the Dodd-Frank Act.

The Obama administration is urging Congress to extend a tax provision allowing troubled homeowners that complete a short sale — or benefit from a principal reduction — to avoid paying taxes on the discharged amount of their loan balance.

The growth in demand for multifamily properties will increase future agency CMBS supply, according to an FTN Financial research report released Tuesday.

With its lawsuits hanging by a thread, National Credit Union Administration (NCUA) urged separate federal courts here and in Kansas Friday to allow it to advance its claims and make its case against Wall Street banks who sold faulty MBS that caused the failure of five corporate credit unions.

Litigation consulting firm Analysis Group has hired four new affiliates to the firm, including fixed-income expert John Richard.