July 31, 1985
The buyer was Salomon Bros., the New York investment banking firm. The sale price was not disclosed, but the amount was termed "modest" by William J. Popejoy, chairman of Irvine-based Financial Corp. of America. FCA Mortgage Securities was started by former Chairman Charles W. Knapp, but it never got off the ground because of FCA's troubles last year. The subsidiary was supposed to buy loans from mortgage bankers, pool them together and sell them to investors for a fee.
April 17, 1986
The Federal National Mortgage Assn. announced that it will start issuing securities backed by new government-insured mortgages, a move intended to bridge the gap caused by the temporary suspension of these guarantees by the Government National Mortgage Assn. Last week, Ginnie Mae temporarily stopped making the guarantees, which affected new loans from the Federal Housing Administration and the Veterans Administration.
May 7, 1995 |
Mutual funds that invest in mortgage-backed securities are enjoying a fine rebound this year after a dismal 1994, shoring up confidence in these popular, if complex, investments. Mortgage fund shareholders who held on through last year's tough climate earned a 5.7% average return over the first four months of 1995, nearly a point better than taxable bond funds generally, reports Morningstar Inc. of Chicago.
February 26, 1988 |
After years of domination by two giant Wall Street investment banking firms, the $700-billion U.S. mortgage-backed securities market is witnessing a significant redistribution of market share, industry sources say. Salomon Bros. and First Boston Inc., which three years ago collectively handled 60% of the mortgage business, now are responsible for just 30% of the $4 billion to $5 billion worth of mortgage securities traded each day.
August 31, 2011 |
Bank of America Corp.'s proposed $8.5-billion settlement with 22 major holders of Countrywide Financial Corp. mortgage securities came under fire in New York federal court as a deadline to challenge the deal arrived. The flurry of objections Monday and Tuesday included a lawsuit by homeowners whose loans had been pooled to back the mortgage bonds. Filings objecting to the deal also were lodged by the Federal Deposit Insurance Corp., which represents failed banks that lost money on the securities, and the Federal Housing Finance Agency, which regulates the government-controlled mortgage giants Freddie Mac and Fannie Mae. The FDIC and the FHFA described their objections as place holders.
July 19, 2011 |
Federal regulators are seeking $629 million in damages from a Royal Bank of Scotland unit accused of selling riskier-than-advertised mortgage securities to Western Corporate Federal Credit Union, a San Dimas credit union that failed during the financial crisis. The National Credit Union Administration lawsuit was filed Monday in U.S. District Court in Los Angeles. It alleged that RBS Securities knew or should have known that the loans backing its bonds contained "systematic" misrepresentations about the borrowers' incomes, debt levels, equity in properties and intent to live in the homes that were mortgaged.