The FHFA partially agreed with the IG's first recommendation and flatly rejected the second.

Company CEO Brian Hale downplayed the news of an offering book, noting that it hired an investment banker because over the past 12 months Stearns has been approached by “a number of interested investors.”

The loan is available in California, Florida, Hawaii and New Jersey, and is slated to be expanded to other states.

The 16, which include the Mortgage Bankers Association and American Bankers Association, want the CFPB to deepen its engagement using industry forums.

Dovenmuehle and Cenlar have long dominated the sector, but a growing number of small and midsized players have made inroads in recent years.

The Mortgage Bankers Association wants the FHFA to push Fannie and Freddie to go easy on mortgage buybacks.

Two other major contributors to the deal, George Mason Mortgage and American Pacific Mortgage, are retail-only shops.

AmeriSave, a nonbank, has not been without controversy itself.

David Stevens, who led the FHA for part of the financial crisis, recalled difficult times dealing with policymakers and appropriators.

“The conservatorships are a huge barrier to entry for private capital,” said former FHFA Acting Director Edward DeMarco.