The Mortgage Bankers Association kicked off its 99th Annual Convention & Expo with a special session on the government’s role in the housing finance system. The session included the CEOs of Fannie Mae and Freddie Mac, as well as leaders from Ginnie Mae, the MBA, the U.S. Housing and Urban Development Department and the Federal Home Loan Banks.
All of the participants showed strong support for the eventual return of private capital to the housing finance system.
The problem is it will take time, and until then, government agencies are backstopping and fostering a majority of the lending and securitization activity taking place in today’s housing finance marketplace. Still, an MBA panel on Sunday remained committed to the idea that a new securitization model can be established by the government-sponsored entities to set the stage for the eventual return of private market activity.
(Get conference updates via Twitter by following Kerri Panchuk.)
American International Group’s (AIG) $10 billion lawsuit against Bank of America (BAC) for allegedly misrepresenting mortgages that were bundled into residential mortgage-backed securities insured by AIG is causing jurisdiction complaints in court.
Law 360 reports that AIG asked the 2nd Circuit Court of Appeals to push the case back to state court on the grounds that the Edge Act, which gives federal courts jurisdiction over banks’ suits involving international transactions, does not apply in the AIG case.
The Federal Deposit Insurance Corp. closed three banks on Friday, bringing the total of failed U.S. banks to 46 this year.
The regulator shut down GulfSouth Private Bank of Destin, Fla., along with First East Side Savings Bank in Tamarac, Fla., and Excel Bank in Sedalia, Mo.
The GulfSouth Private Bank branches will open as part of SmartBank of ()., on Monday.
Excel Bank’s assets were transferred to Simmons First National Bank out of Pine Bluff, Ark., while the assets of First East Side Savings are under the umbrella of Stearns Bank National Association in St. Cloud, Minn.
The three banks together could cost the FDIC insurance fund as much as $86.1 million.
kpanchuk@housingwire.com
