Daily Dose

A ruling issued by a federal judge this week clears the way for investors to proceed with a class-action suit against JPMorgan Chase, meaning that all the investors can be represented by a lead plaintiff in the case. Investors are accusing the bank of misleading them by making false statements regarding the RMBS when the securities were packaged and sold to the investors in 2007, a year before the subprime lending crisis.

Out of 884 community bankers currently active in the mortgage space, 31 percent expect their institution's residential mortgage holdings at the end of the year will be less than their level last year, according to findings released by the Federal Reserve and the Conference of State Bank Supervisors. Of those who anticipate reductions in the dollar value of their mortgage holdings, most pointed to increased regulation and compliance costs at the reason.

According to an announcement from the bureau, Lighthouse Title, which operates in branches throughout the state, entered into marketing services agreements (MSAs) with various companies "with the understanding that the companies would refer mortgage closings and title insurance business to Lighthouse."

After posting a slight increase in July, Freddie Mac's mortgage portfolio declined at an annualized rate of 0.4 percent over the month of August, according to the GSE's latest monthly volume summary. Year-to-date, the portfolio's annualized growth rate has averaged -1.6 percent, bolstered by declines near or higher than 2 percent in each of the first five months of the year.

Fannie Mae's book of business shrank in August at its steepest rate in more than a year, according to the company's latest volume summary. The company reported a compounded growth rate of -4.0 percent in its book for August, putting its total value down to $3.1 trillion. It was the ninth straight month of contraction.

JPMorgan Chase reports it has completed nearly a quarter of its consumer relief obligations required under a landmark mortgage-backed securities (MBS) settlement last year. According to a report issued Wednesday by the settlement's monitor, Joseph Smith Jr., the megabank expects to be credited for more than $862 million it provided through various borrower relief measures in the second quarter.

According to the latest Trulia Housing Barometer, while home prices, sales, and delinquency rates are all most of the way back to normal, new construction starts and a poor employment rate among young adults are snagging full economic recovery. However, all five indicators have improved year-over-year, if slightly in some areas.

In its Primary Mortgage Market Survey for the week ending October 2, Freddie Mac reported a minor pullback in the 30-year fixed interest rate to an average 4.19 percent (0.4 point) from last week's 4.20 percent. The average 30-year fixed was also little changed from last year's average rate of 4.22 percent.

The Mortgage Bankers Association's (MBA) Mortgage Credit Availability Index was flat at 116.1 for the month, the group reported Thursday. The gauge is calculated based on borrower eligibility metrics nationwide and underwriting criteria for more than 85 lenders and investors. At its current level, the index points to a slightly looser credit market now compared to when it was benchmarked in March 2012.

Judge Royce Lambert dismissed lawsuits filed in 2013 by investors at Fairholme Funds, led by Bruce Berkowitz, and Perry Capital with regards to the government's "sweeping" of GSE profits into the U.S. Treasury. The investors believed that the diversion of GSE profits created a "windfall" for the government while short changing GSE shareholders.