Over the years, HUD has seen a steady decline in its staffing level – perhaps to its lowest level ever, in fact – while at the same time being called upon to administer an increasing number of programs.

At an investor conference in New York this week, officials from Wells Fargo predicted that residential originations at the bank will fall 30 percent this quarter on a sequential basis.

Mortgage loan officers have been spared from lay-offs. But how long will it last? Brokers get dismissed again?

A compare ratio north of 150 percent will land a lender on HUD’s watch list. A ratio greater than 200 percent could result in disciplinary action and potential loss of FHA approval.

Publicly traded REITs like Redwood Trust would fill the void if Fannie Mae and Freddie Mac lower loan limits next year. But they will be competing against portfolio lenders.

It appears the House of Representatives is giving up on GSE reform this year. However, the Senate could move forward, even though passage is considered a long shot, at best.

Congress is back in town and several new mortgage-related hearings are set for this week.

Nonbanks are making progress in picking up market share, but it's uncertain how much more turf commercial banks might cede.

Nonbanks are stepping up to the plate on agency MBS. Meanwhile, a handful of large "term" loans are being put together, allowing investors to finance MSRs.

Federal regulators issued a revised credit risk retention/qualified residential mortgage proposed rule late last month, one that tilts heavily in the direction of the qualified mortgage provisions established in the CFPB’s ability-to-repay rule – and that close proximity concerns the bureau’s director, Richard Cordray. “The proposal released Aug. 28 we see as another key step in obtaining further certainty for the mortgage market going forward,” said Cordray, who as one of the four members of the Federal Deposit...