Articles by Diana Golobay

New Northern Rock retail bank posts maiden loss

The new Northern Rock retail bank, born from the ashes of the original lender which was Britain's first major credit crisis casualty, posted a maiden loss on Tuesday and saw deposits plunge by a tenth. State-owned Northern Rock, which manages new mortgages and savings, posted a loss of £140m ($216.5mn) for the six months ending June, due partly to costs for its spin-off from the original company.
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Industry Urges SEC to Coordinate Overlaps in Reg AB and Dodd-Frank

Several mortgage finance industry groups are urging the Securities and Exchange Commission (SEC) to coordinate with other regulating entities on its proposed revisions to Regulation AB (Reg AB). Certain requirements under the SEC's proposals, including 5% risk retention, overlap with provisions of the recently signed Dodd-Frank Act, they say.
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Dual role in housing deals puts spotlight on Deutsche

Federal probes of the collapsed mortgage-bond boom are shedding light on how Wall Street firms sometimes created securities and sold them to one set of investors, while advising others to bet against them. One firm that was a major player in mortgage securities, Deutsche Bank AG, illustrates a pattern investigators are looking at. While creating and selling mortgage securities to some of its clients, the big German bank was not only advising other clients to bet the other way, but also sometimes doing so itself.
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Ally Financial Gains $565m on Improved Quarterly Mortgage Operations

Ally Financial reported $565m net income in Q210, compared to a $3.9bn net loss in the year-ago quarter, partly due to improved mortgage operations. The company continued to minimize legacy mortgage risk during the quarter, executing the sale of domestic non-core and international assets totaling more than $1.2bn of unpaid principal balance.
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GSE Reform is on the Menu, Geithner Says

US Treasury Department secretary Timothy Geithner noted the Obama Administration is planning to reform the mortgage finance industry and the government-sponsored enterprises (GSEs) as part of its move to bring greater clarity and regulation to the broader financial system.
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Fannie Launches Distressed Borrower Education Site

Fannie Mae today is launching a borrower-facing outreach site designed to educate distressed homeowners on potential retention strategies and foreclosure alternatives. The online education resource -- available in both English and Spanish -- offers calculators to demonstrate to borrowers the mechanics of refinance, repayment, forbearance and modification options. It also offers information on Fannie's Deed-For-Lease program, which allows borrowers to become renters in the same property after pursing deed-in-lieu of foreclosure.
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FHA Mortgage Insurance Claims, Payments Lower than Projected

The dollar amount and number of mortgage insurance claims at the Federal Housing Administration (FHA) so far in its fiscal year 2010 fall short of projections made by the independent actuarial study for fiscal year 2009. Total capital resources in the FHA's single-family mutual mortgage insurance (MMI) fund rose to $33.1bn as of June, from $32.2bn at the end of March, according to the quarterly report to Congress authored by FHA chief risk officer Bob Ryan.
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Bernanke says U.S. consumer spending to accelerate

Federal Reserve Chairman Ben Bernanke said rising wages will probably spur household spending in the next few quarters, even as weak job gains drag down consumer confidence. While the US has "a considerable way to go" for a full recovery, "rising demand from households and businesses should help sustain growth," Bernanke said today in a speech in Charleston, South Carolina. "We are maintaining strong monetary policy support for the recovery," he said in response to an audience question, without discussing any further action the Fed could take to aid growth.
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