Government

The Securities and Exchange Commission (SEC) on Thursday charged RBS Securities Inc., the wholesale banking subsidiary of the Royal Bank of Scotland, with misleading investors in a 2007 subprime residential mortgage-backed security (RMBS) offering. RBS agreed to settle the matter and pay more than $150 million, which the SEC will use to compensate investors for harm suffered as a result of the RBS deal.

Bill Griffin, EVP at Lender Processing Services (LPS), has been elected to serve on the Mortgage Bankers Association's (MBA) board of directors, the company announced. Griffin joins a number of new board members who will work together with the existing members to set MBA's strategic direction and oversee management of its initiatives.

Freddie Mac has priced a $630 million offering of Structured Agency Credit Risk (STACR) debt notes, marking the second STACR offering in which private sources--not taxpayers--take on the credit risk. According to a statement from the GSE, about 50 broadly-diversified investors participated in the offering for the debt notes, which are scheduled to settle November 12.

Fannie Mae released its September book of business, revealing further declines as new acquisitions came to their lowest level in more than a year. The GSE's book of business totaled $3.163 trillion as of the end of September, shrinking at a compound annual rate of 1.3 percent. The company's single-family serious delinquency rate slipped to 2.55 percent.

A private-sector initiative launched by JPMorgan Chase in early 2011, the 100,000 Jobs Mission, is less than 8,000 positions from its goal. Member companies have collectively hired 92,869 U.S. military veterans through the third quarter of 2013, the organization recently reported. Firm's participating in the initiative are working toward a goal of hiring at least 100,000 veterans by the year 2020.

Homebuyers shook off their fears and returned to the market in force following the re-opening of the government in October, according to data presented by Redfin's Research Center. The online brokerage reported a 58 percent annual increase in the number of interested buyers reaching out to its agents in the week immediately following the resolution of the partial federal government shutdown. The number of clients touring homes and those making offers also grew.

As of November 1st, Fannie Mae is no longer purchasing loans with loan-to-value ratios above 95 percent, which means borrowers must put up a down payment of at least 5 percent, as opposed to the 3 percent previously required. Industry experts with the Urban Institute's Housing Finance Policy Center argue this move is arbitrary and likely to provide little benefit to the GSE or to taxpayers.

Senate Republicans blocked a vote on the nomination of Rep. Melvin Watt to head up the Federal Housing Finance Agency. Watt's proponents say the former real estate lawyer would support greater consumer protections and assistance for homeowners. Critics say acting director Edward DeMarco has dutifully protected taxpayers, pursued policies that promote a healthy housing economy, and should get the nod for the director's spot.

Over the life of the government's Home Affordable Modification Program (HAMP), 1.25 million homeowners have received permanent HAMP modifications, and 27 percent of those have later redefaulted on their loans, according to a quarterly report to Congress from the TARP special inspector general. The inspector general expressed concern as far back as April that HAMP redefaults were ""increasing at an alarming rate.""

Seventy-one percent of single-family homes in the United States were built before 1990, according to a new industry report. So far this year, 60 percent of residential transactions involved homes built prior to 1990. This older housing stock comes with less competition from other buyers and lower price points, and the Federal Housing Administration's 203(k) program allows owner-occupants to roll the cost of minor and major renovations into the financing for a home purchase or a mortgage refinancing.