First Guaranty is said to be shutting down one or more lending divisions, according to sources. The info comes on the back of several high-level departures at the company. One source confirmed that the company’s Wholesale division shut earlier this week.
Heavy mortgage-related litigation expenses and a mortgage lending business in retreat hurt Bank of America in the first quarter of 2014, with the bank forking over $6 billion in mortgage-related litigation costs this quarter.
The government-sponsored enterprise said the settlement would terminate insurance policies that guarantee the payment of principal and interest on mortgage-backed securities it holds that were issued or serviced by ResCap.
One of the 10 largest shareholders of Home Loan Servicing Solutions, Mangrove Partners, is following through on its threat to replace HLSS’ board of directors in an effort to force the company to end its relationship with Ocwen Financial.
PMI Mortgage Insurance Co., the primary subsidiary for the PMI Group, Inc. [stock PMI][/stock], announced Friday that it sold its equity ownership in Financial Guaranty Insurance Company Corporation (FGIC). PMI had owned a total of 42% of FGIC. Head of Investor Relations, Bill Horning, said PMI wrote the investment down to zero, with no positive or negative financial obligations to FGIC, by Dec. 31, 2008. He did not comment on why the sale did not take place sooner than 2010.
A look at stories across HousingWire’s weekend desk…with more coverage to come on bigger issues: The eyes of mortgage investors will be on earnings reports from the government-sponsored enterprises (GSEs) this week, according to Yahoo Finance, although this information could not be confirmed with GSE spokespeople before market open.
The PMI Group said late Wednesday that it will postpone the release of its fourth quarter earnings due to delays in obtaining fourth quarter 2007 financial results from FGIC Corporation. The insurer said results for its mortgage insurance operations were complete, but that it could not release its full results without FGIC’s financials. No date for a rescheduled earnings release was set.
FGIC Corp. — the first monoline to lose its AAA status at all three major rating agencies — has asked to be split into two in order to protect the municipal bonds it insures, according to a Bloomberg report:
Making it the third AAA-rated bond insurer to lose its top credit rating, Fitch Ratings said Wednesday that it had downgraded Financial Guaranty Insurance Company, the fourth largest monoline, to a AA rating. The two-notch downgrade comes as the guarantor failed to meet a deadline for strengthening capital, Fitch said. From the press statement: