PNC Financial Services Group Inc., the second-biggest U.S. regional bank, reached an $89 million settlement with Freddie Mac over mortgages sold to the government-backed firm in years leading up to the credit crisis.
The U.S. Senate will seek again next week to confirm Democratic Representative Mel Watt to lead the federal agency that oversees government-chartered mortgage finance companies Fannie Mae and Freddie Mac, an aide said.
Assuming prosecutors can clear legal challenges against applying retroactively the law's longer statute of limitations -- from five years to six -- the next step will be deciding whether to reopen the investigative files of top banking executives.
U.S. prosecutors are showing new resolve in pursuing cases against the financial institutions that sold the shoddy mortgages that caused the housing crisis that crippled the financial system in 2007-08 and wreaked global economic damage.
The first annual losses in U.S. government-backed mortgage bonds since 1994 are deepening as the dual threats of a new regulator and a Federal Reserve pullback leave buyers navigating around what JPMorgan Chase & Co. calls a modern-day Scylla and Charybdis.
Invesco Mortgage Capital Inc. bought all of the residential mortgage-backed securities created last month in a $300 million deal without government backing, amid lower demand for the top-rated portions of such transactions that’s stunted a revival in the non-agency bond market.