Items Tagged with 'mortgage bonds'

ARTICLES

Fed's Bullard says GSE reform could lead Fed to dump Fannie, Freddie holdings

Federal Reserve Bank of St. Louis president on future of housing
While it's clear the Trump administration plans to move on GSE reform, what isn’t known yet is just what those plans will look like. Further, what impact will those plans put on the country’s financial system? One area where the Trump administration’s GSE plans could reverberate is on the Federal Reserve and its mortgage bond holdings.
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Credit Suisse reaches $5.28 billion mortgage bond settlement

Required to provide $2.8 billion in consumer relief
For the second time in as many days, the Department of Justice announced that it reached a multi-billion dollar settlement with a foreign-based bank over its mortgage securitization practices leading up to the housing crisis. On Tuesday, the DOJ announced that it reached a $7.2 billion settlement with Deutsche Bank. Now, it’s Credit Suisse’s turn.
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Former Cantor Fitzgerald mortgage bond trader charged with securities fraud

David Demos accused of defrauding firm that managed TARP funds
A former mortgage bond trader at Cantor Fitzgerald stands accused of committing securities fraud by allegedly overcharging customers for residential mortgage-backed securities, a collection of federal agencies announced Friday. Among the victims of this alleged scheme are asset managers and firms affiliated with or subsidiaries of recipients of funds from the Troubled Asset Relief Program, the government said.
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AAA ratings return for non-prime mortgage bonds. Crisis redux? Maybe not

Feature of new RMBS deal builds in greater protections for bond buyers
The world of post-crisis mortgage bond trading is about to change, as a new mortgage bond is set to hit the market that features loans that would be considered non-prime, and also carries AAA ratings – a post-crisis first. Both Fitch Ratings and DBRS handed the deal AAA ratings on the largest tranche of the deal, but the deal is not a return to the pre-crisis world of credit ratings, at least not yet.
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S&P: Bond issuance hits yearly high; mortgage bonds not so much

RMBS issuance now tracking well below 2014 and 2015
Back in September, a report from Standard & Poor’s Global Ratings showed the mortgage bond well running dry, as the rate at which new residential mortgage-backed securities entered the market showed serious signs of slowing down. Well, S&P updated that report Tuesday, complete with bond issuance from October, and the news isn’t good for mortgage bonds or mortgage bond investors.
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Did whistleblower out First Mortgage's $7.5 million Ginnie Mae mortgage bond fraud?

The SEC wants to know, offers potential reward
The Securities and Exchange Commission is offering a reward to the whistleblower that revealed a scheme at First Mortgage Corporation that involved several of the company’s senior executives lying about the performance of the mortgages the company originated, re-securitizing them, and defrauding investors out of $7.5 million – if in fact there is one.
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SEC fines, bans former Goldman Sachs head RMBS trader for fraud

Edwin Chin ordered to pay $400,000 for overcharging mortgage bond buyers
Edwin Chin, who served as Goldman Sachs' head RMBS trader from 2010 through 2012, agreed to settle charges brought by the SEC that he lied to clients about the prices of RMBS deals, frequently misrepresenting not only the prices that Goldman Sachs paid for the mortgage bonds, but whether the bonds were sold out of Goldman Sachs' inventory or not. This alleged misconduct generated millions of dollars of extra revenue for Goldman Sachs.
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