Secondary Market

In a filing with the Securities and Exchange Commission (SEC) Tuesday, Morgan Stanley revealed it has reached a $1.25 billion agreement in principle with FHFA to resolve pending mortgage-backed securities (MBS)-related litigation. In connection with the settlement, the company announced it is recording a $150 million addition to its fourth-quarter legal reserves.

MountainView Servicing Group is marketing a $2.4 billion Fannie Mae mortgage servicing rights portfolio. According to MountainView, the portfolio is made up of 100 percent first-lien loans with an average loan-to-value ratio of 76 percent and an average FICO score of 765.

Fannie Mae’s book of business shrank in December, ending a short streak of growth and marking the eighth month of 2013 in which business slowed.

The Federal Open Market Committee (FOMC) voted on Wednesday to scale back the Federal Reserve's bond-buying program. The cut—the second one in as many months—will see total monthly asset purchases coming down to $65 billion. While December's weak employment report led some to believe there might be a pause in the taper, the committee waved it off in light of other, more positive indicators.

According to Freddie Mac's December volume summary, the GSE's total mortgage portfolio grew at an annualized rate of 0.4 percent for the month, bringing 2013's average rate to -2.6 percent. The portfolio grew in four out of last year's 12 months and shrank in eight, including a streak of declines from July through November. As of the end of the year, the portfolio was valued at approximately $1.91 trillion.

It's been a quiet week for mortgage rates, which drifted down slightly as markets wait to see what comes of the Federal Open Market Committee's next meeting in late January.

Ocwen's servicing segment is set to acquire mortgage servicing rights (MSRs) on a $39 billion portfolio from Wells Fargo, the two companies announced Wednesday. The loans underlying the MSRs in the portfolio are primarily in private label securities, the companies said, and they were not originated by Wells Fargo. They represent about 2 percent of Wells Fargo's total residential servicing portfolio as of the end of 2013.

Following a year of fast-paced appreciation, Fitch Ratings expects home price gains to slow to a more moderate pace in 2014 in the United States, according to its Global Housing and Mortgage Outlook released Tuesday. The ratings agency also predicts mortgage volume will decline and delinquencies and shadow inventory will decrease, albeit slowly, while liquidation timelines continue to rise.

Stewart Lender Services hired John Desmond as director of regulatory compliance, capital markets. Desmond is responsible for overseeing the compliance and regulatory aspects of operations within Stewart’s capital markets group. Desmond has more than 19 years’ mortgage experience with a particular focus on origination operations and origination-related compliance. He has an additional five years’ legal experience in commercial litigation, corporate finance, and secured transactions.

Mortgage Industry Advisory Corporation (MIAC) announced two new mortgage servicing rights (MSR) portfolios totaling more than $694 million. The first offering is a $669.22 million portfolio from a seller with originations focused mostly in the Northeast. The portfolio contains a mix of Fannie Mae (47 percent) and Ginnie Mae (50.9 percent) loans, with warehouse loans making up the rest. The second offering is a $24.96 million portfolio featuring 79.8 percent Ginnie Mae and 20.2 percent Fannie Mae loans.