U.S. home-loan securities without government backing, the debt that sparked the worst financial crisis since the Great Depression, shrank last quarter to less than $1 trillion for the first time in eight years, leaving fewer bonds to meet soaring demand as housing recovers.
Wells Fargo & Co.’s grip on the U.S. mortgage market has tripped alarms among regulators and lawmakers concerned that the bank’s control over one of every three new loans could hurt consumers and undermine markets.
Wall Street’s biggest lobbying group is split over a proposed settlement of state and federal foreclosure probes, after a committee of money managers signaled it opposes terms letting banks push some costs onto bondholders.
After he bought his Dallas home last year, attorney Talcott Franklin found a novel way to eliminate a musty odor emanating from a basement well installed as part of a previous owner’s air-raid shelter: He used boat hatches to seal it.
Bank of America Corp.’s effort to move past the soured mortgages that Countrywide Financial Corp. packaged into securities may hinge on whether a judge agrees that the world’s largest bond buyers struck a generous-enough deal for all investors.
Fannie Mae and Freddie Mac ’s regulator may identify as much as $30 billion of debt included in mortgage bonds that the companies can force sellers to repurchase, according to Joshua Rosner , an analyst who in 2007 predicted the collapse in the market for the securities.
A group of mortgage -bond holders has expanded to give members stakes of at least 25 percent in more than 3,000 securitizations, potentially putting them in a stronger position to force lenders to buy back soured home loans, lawyer Talcott Franklin said.