Tag Archives: Mortgage-Backed Securities

New business acquisitions totaled just less than $40 billion throughout the month, a nearly 12 percent rise over June and the strongest month for new business since last November, the mortgage giant reported.

The case revolves around mortgages originated through Countrywide's High Speed Swim Lane (HSSL, or "Hustle") program that were later sold to Fannie Mae and Freddie Mac. The complaint against Bank of America alleged that Countrywide—which the bank purchased in 2008—threw out quality controls in pursuit of higher volumes and then misrepresented those loans to the GSEs.

Bank of America announced Thursday morning it has agreed to pay a record $16.65 billion to resolve claims related to the sale of toxic mortgage-backed securities during the years leading up the financial crisis.

Citigroup is close to a deal with the Department of Justice to resolve allegations that the bank sold defective mortgage backed securities in the lead up to the financial crisis.

The Federal Open Market Committee (FOMC) concluded its June meeting with the announcement that members have once again voted to bring down the Federal Reserve's stimulative monthly asset purchases. Taking a cue from improvements in labor market indicators, household spending, and general economic activity, the committee members voted to reduce the Fed's monthly purchase of agency mortgage-backed securities.

The Board of Governors of the Federal Reserve System issued their Federal Open Market Committee statement, commenting that growth in economic activity has picked up recently despite a sluggish first quarter, due in part to adverse weather conditions. The Fed noted that recovery in the housing sector remained slow.

The Federal Housing Finance Agency (FHFA) announced a settlement with Barclays Bank PLC for $280 million, resolving legal claims against the bank related to allegations of violations of federal and state securities laws in connection with private-label mortgage-backed securities (MBS) purchased by the GSEs.

Fannie Mae issued approximately $3.5 billion of multifamily mortgage-backed securities (MBS) in the first quarter of 2014, the company said in a press release Monday. The securities are backed by new multifamily loans delivered by the company's lenders.

A lawsuit filed by European bank LBBW Luxemburg S.A. over an alleged $1.5 billion subprime mortgage-backed securities (MBS) fraud scheme was upheld by a federal judge, who denied the bank’s motions to dismiss. U.S. District Judge J. Paul Oetken let stand charges of fraud, breach of contract, negligent misrepresentation, and constructive fraud against Wells Fargo Securities LLC and Fortis Securities LLC.

The Securities and Exchange Commission (SEC) announced Wednesday that it has charged global investment bank and brokerage firm Jefferies LLC with "failing to supervise employees on its mortgage-backed securities desk who were lying to customers about pricing."