In coordination with the federal-state Residential Mortgage-Backed Securities Working Group, the Securities & Exchange Commission (SEC) charged JP Morgan Securities LLC and Credit Suisse Securities (USA) with misleading investors in offerings of residential mortgage-backed securities (RMBS). The firms agreed to settlements in which they will pay more than $400 million combined, and the SEC plans to distribute the money to harmed investors.Click to continue

The Financial Industry Regulatory Authority (FINRA) has significantly increased transparency in the so-called "To-Be-Announced" (TBA) market for agency pass-through mortgage-backed securities (MBS). This market represents more than $270 billion traded on an average daily basis in 8,400 trades. Through the Trade Reporting and Compliance Engine (TRACE), FINRA has begun disseminating TBA transaction information, including the CUSIP, time of transaction, price, size and other related information.Click to continue

Community Bank Mortgage LLC, a subsidiary of the American Bankers Association (ABA), has selected Stonegate Mortgage Corporation as its newest secondary market investor. With this selection, Community Bank Mortgage owner banks can sell loans on a “servicing-released” basis to Stonegate Mortgage with competitive pricing as well as access Stonegate Mortgage’s full line of mortgage finance products.Click to continue

JPMorgan Chase has been denied by U.S. District Judge Denise Cote in their request to have several lawsuits filed by the Federal Housing Finance Agency (FHFA) over mortgage-backed securities (MBS) dismissed. The suit filed by the FHFA against Chase was just one of 17 filed by the agency against financial institutions related to the purchase and sale of MBS.Click to continue

The Federal Housing Finance Agency (FHFA) has released updated projections of the financial performance of the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, including potential draws under the Senior Preferred Stock Purchase Agreements (PSPAs) with the U.S. Department of the Treasury. These updated projections show cumulative Treasury draws that are reduced and more stable compared to previous projections.Click to continue

Open Mortgage LLC has announced the hiring of Tom Aarons as its new director of secondary marketing. Aarons just celebrated 36 years in the financial services industry with the last 28 years dedicated entirely to mortgage banking. The depth of knowledge acquired during Tom's career can be best exemplified in the senior and executive level positions in loan production, operations, corporate finance, secondary marketing, and loan servicing.Click to continue

The Federal Housing Finance Agency (FHFA) has released an updated strategic plan for FHFA for fiscal years 2013-2017 subtitled, “Preparing a Foundation for a More Efficient and Effective Housing Finance System.” The four strategic goals included in the new FHFA plan are:

►Safe and sound housing government-sponsored enterprises (GSEs)—Fannie Mae, Freddie Mac and Federal Home Loan Banks;

►Stability, liquidity, and access in housing finance;

►Preserve and conserve Enterprise (Fannie Mae and Freddie Mac) assets; andClick to continue

Residential Finance Corporation (RFC) has announced that it is now a Fannie Mae Seller-Servicer and will be retaining the servicing of select loans. This designation, a reflection of RFC’s commitment to loan quality and compliance, will allow the lender to service its own loans. Instead of simply selling loans to the secondary market, Fannie Mae’s approval will allow RFC to nurture its relationships with its customers for the life of their loans.Click to continue

The Federal Housing Finance Agency (FHFA) has released a white paper for public input on a proposed framework for a common securitization platform and a model Pooling and Servicing Agreement. Developing a new securitization infrastructure is a key goal of the FHFA Strategic Plan for Enterprise Conservatorships and builds on other initiatives already underway to align and improve the business practices of Fannie Mae and Freddie Mac.Click to continue

Independent mortgage banks and mortgage subsidiaries of chartered banks made an average profit of $2,152 on each loan they originated in the second quarter of 2012, up from $1,654 per loan in the first quarter, according to the Mortgage Bankers Association (MBA). “With the surge in production volume in the second quarter, net production profits among independent mortgage bankers increased, surpassing 100 basis points for the first time since inception of our report in 2008,” said MBA Associate Vice President of Industry Analysis Marina Walsh.Click to continue