Hedge funds led by Paulson & Co. and Maverick Capital are piling into mortgage insurers in a bet that some of the companies worst hit by the U.S. housing crash will be among the biggest winners in the rebound.
Ocwen Financial Corp. won a $3 billion auction for Residential Capital LLC’s loan-servicing unit, outbidding Nationstar Mortgage Holdings Inc. as it aims to become the largest non-bank home-loan servicer.
MGIC Investment Corp., the mortgage insurer that requested waivers from its regulator to keep writing new policies, was unprofitable for a seventh straight period as homeowners struggled to make their payments.
Colony Financial Inc. and Starwood Property Trust Inc., the U.S. mortgage investors formed two years ago amid an expected surge of distressed debt, are turning to Europe as banks tighten lending and sell real estate loans.
U.S. President Barack Obama, who tours foreclosure-ravaged Nevada and California this week, may face homeowners demanding bolder action as regulators prepare to release details of new housing proposals as early as this week.
Redwood Trust Inc. and Citigroup Inc. partnered to create the first new-mortgage securities without government-backed guarantees in more than two years, selling $222.4 million of the debt at lower yields than initially offered.