Government

Acting on behalf of Fannie Mae and Freddie Mac, the Federal Housing Finance Agency filed suits Friday against 17 of the nation├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós largest banks and firms to recover losses stemming from mortgage-backed securities. At stake: tens of billions of dollars in assets, according to market watchers. Multiple news outlets fixed losses in mortgage-backed securities for the GSEs at $41 billion. The federal agency announced that it filed the suits on behalf of the GSEs in a New York federal court.

The economy shed as many employees as it brought on in August, leading to a startling net gain of zero jobs on a seasonally adjusted basis. Housing sectors showed no immunity to fears of a recession and slowdown.

Housing market conditions remained fragile despite numerous initiatives put forward by the Obama administration, according to a recent scorecard released Thursday by HUD and the Treasury Department. The administration cited numerous industry-respected analytics sources and painted a helpful portrait of the homeownership and refinance endeavors it has made possible. Sources polled for the government gauge of housing and economic health included CoreLogic and Standard & Poor's, among others.

Publicly traded real estate companies, commonly known as Real Estate Investment Trusts, could see their industry fall under new rules and regulations if a new rule-making proposal sees approval by the Securities and Exchange Commission. The federal commission voted Wednesday to investigate whether these companies meet definitions under the Company Investment Act, a law from which publicly traded real estate companies have been exempt for nearly 50 years.

As of Thursday, appraisers and realtors must now use a new universal grading rubric when it comes to their assessments for properties with government-backed mortgages. Fannie Mae and Freddie Mac recently revised their appraisal guidelines to streamline a sometimes unclear process, but some warn of the potential for fallout among appraisers, realtors, and homeowners unfamiliar with the new standards. Appraisers will need to weigh property values against new codes and abbreviations.

Lewisville, Texas, will gain 700 new employment opportunities courtesy of JPMorgan Chase & Co. The financial institution is set to open a major mortgage servicing center in the area, adding to 2,000 area workers.

Private holding company JGWPT, which recently announced the acquisition of J.G. Wentworth and Peachtree Financial Solutions, has made another advancement, with the launch of its reverse mortgage division. The newly formed reverse mortgage segment will operate as part of the Peachtree group of companies and will be based in Boynton Beach.

If the Mortgage Bankers Association has its way, loan originators may soon have the ability to legally transition from entities under federal supervision and regulation to institutions under subject to state rules and authority. The trade group recently proposed amending the Secure and Fair Enforcement for Mortgage Licensing Act in a way that would supply originators with a transitional license. The MBA drafted the amendment to reshape language under the Conference of State Bank Supervisors and American Association of Mortgage Regulators.

On the heels of attempts by investors to derail a mega settlement in the courts, Bank of America continued to shake up headlines Wednesday with multiple news outlets confirming that the mortgage giant plans to sell off its share of the correspondent mortgage market. With mortgage correspondents in the bank├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós unit set to soon receive their pink slips, multiple news outlets quoted suggested that some 3,500 could feel impact in their jobs. New job losses would follow recently reported second-quarter fallout.

With its recent participation in a major commercial mortgage loan securitization, Starwood Property Trust, Inc. is enhancing its debt-related funding. The transaction, led by Deutsche Bank Securities, Inc., included four first mortgage loans contributed by Starwood, which when combined carried an aggregate principal balance of $154.