Tag:
GSEs
Latest Headlines
Latest Headlines
Legal liability mounting for top banks
The legal liability of the top 17 banks went up measurably when the Federal Housing Finance Authority, created to oversee the big GSEs, sued in September, accusing the banks of misrepresenting the quality of billions of dollars worth of consumer mortgages.
We're starting to get a glimpse of j
Bank of America settlement with FHFA: A bad deal for taxpayers?
The Federal Housing Finance Agency (FHFA) was set up to oversee the big residential mortgage GSEs as part of a move to transition these big entities out of near insolvency to whatever future is decided for them.
Back in December, the agency scored an ostensible victory when it inked settlement
PIMCO aims to buy more bank stakes
How's this for bullishness on banks? PIMCO has set up an investment fund to buy distressed banks. The $2.3 billion fund has already set its sights on a deal.
According to Reuters , the Federal Reserve Bank of Richmond is reviewing an application for a company run by the PIMCO Bravo Fund to
Costs of foreclosure fiasco rising fast
So how much has the foreclosure fiasco cost the top banks so far?
There are many ways that bad mortgages and the fallout have generated costs, and Bloomberg has done us a favor by tallying them up and concluding that the top five have so far lost $65.7 billion. Bank of America has lost $39
Role of Fannie Mae and Freddie Mac to survive, but how?
In the battle to formulate a new approach to guaranteeing housing credits, one big issue has been what role, if any, the big GSEs should play. The battle of the pundits has raged, but now the government is on the brink of refining its views and taking a firm position.
The Washington Post r
Is Bank of America's other putback deal now also souring?
Bank of America has been the target of lots of angst over its $8.5 billion deal to settle putback claims with blue-chip bondholders, the likes of PIMCO and BlackRock. As other investors and the New York Attorney General continue to fight the deal in court, the once-sweet deal seems to be souring.
Redwood Trust leads pack in private mortgage securitization
Should we envy or pity Redwood Trust, a publicly traded REIT that has gained fame for being one of the only firms to come to private label residential mortgage backed securities transactions since the financial crisis?
The trust completed securitizations in April 2010 and in March 2011, and ho
Bank of America's putback burden still heavy
We all knew Bank of America's Countrywide deal stuck it with a whole lot of bad loans, but it's never been exactly clear how bad. One proxy has been the level of putback exposure the bank has been stuck with. Unfortunately, there have been widely varying estimates of that exposure.
The latest
Regulators propose new rules for mortgage securitization
What will the standard residential mortgage of the future look like? Well, frankly it may not be all that different from an end-user standpoint. Dodd-Frank required--and the FDIC just agreed to formally propose--that entities that securitize residential loans must keep at least 5 percent of the cr
The consequences of a reduced role for Fannie, Freddie
The housing crisis has led to some rare bipartisan support on at least one issue: the need to gradually wind down the role of the two big housing GSEs, Fannie Mae and Freddie Mac, and thus the role of the government in the housing market. It's a politically popular position right now.
Recall t
