Servicing Business Becoming Unprofitable
The cost of servicing residential mortgages has gotten so out of hand that it is starting to make sense for some firms to get out of the business.

Costs associated servicing a performing mortgage are projected to increase between 25 percent and 50 percent compared to pre-crisis levels.

On non-performing loans, the costs are likely to more than double.
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Ally Struggles With Mortgage Ops
Losses from mortgage operations took a big bite out of Ally Financial Inc.'searnings. Still, the lender managed to increase quarterly originations and keep delinquency from rising.

Citi Abandons Broker Business
Citigroup Inc.'s mortgage lending unit is getting out of wholesale lending.

FHFA Addresses Freddie's Bets Against Refinances
Claims that the Federal Home Loan Mortgage Corp.'s investments gave it an incentive to keep borrowers in high-rate mortgages were addressed by its regulator.

Servicers Navigate Courts
While foreclosures and loan modifications have been the top stories in mortgage servicer litigation, the firms still face legal actions on other fronts. Among the other issues that the sector is dealing with are flood insurance coverage, homeowners insurance claims and repurchases.

Generating and Managing Mortgage Leads
In addition to residential mortgage leads, loan originators now have access to leads for commercial mortgages, loan modifications and the federal refinance program. One lead generation firm recently started offering exclusive leads and a lead-scoring engine, while another is guaranteeing quoted rates for prospective borrowers. Two other lead firms recently merged.

Week's Bank Failure Costs Exceed $600 Million
This week's bank failures -- including a financial institution with more than $1 billion in assets -- more than doubled the number of federally insured banks that have been shut down so far during 2012. Losses from the latest round of closings are projected to exceed $600 million.

Litigating Secondary Trades
Several recent lawsuits tied to secondary marketing involve criminal activity. The alleged schemes often involve selling loans that are lower quality than what is being marketed, while other cases involve trading mortgages that didn't even exist.

Critics Question Timing of RMBS Fraud Unit
Critics of President Barack Obama's plan to create a special unit of federal prosecutors and state attorneys general say that such a move should have been done early on in his presidency and not now, long after the events were fresh in the minds of potential witnesses.

Ratings Agency Sued Over Bad MBS Ratings
A lawsuit has been filed against one of the largest U.S. credit rating agencies by the state of Illinois.