It’s been a rough few years for bond insurer MBIA, but after settling legacy mortgage-backed securities litigation with Bank of America and Société Générale, the bond insurer assured investors this week in a securities filing that all major doubts about the firm’s future are over.
(Update 1: expands discussion of subprime-linked lawsuits)
A federal court in the Southern District of California, San Diego dismissed a motion from Countrywide Financial to throw out a class action lawsuit brought against the nation's largest mortgage lender.
Ahead of bank stress test results, slated for release Friday, a mortgage lending race is on for the two major U.S. lenders, Wells Fargo & Co. [stock WFC][/stock] and Bank of America Corp. [stock BAC][/stock], which are locked in a competition for mortgage business.
With the recent turnover in leadership at the Federal Housing Finance Agency, we may be standing at the precipice of great change in the government’s role in supporting the mortgage market through Fannie Mae and Freddie Mac.