Production of conventional mortgages – those eligible for sale to Fannie Mae and Freddie Mac as well as jumbo loans – grew at a faster rate than the government-insured market during the second quarter of 2014, according to a new Inside Mortgage Finance analysis. Origination of conventional-conforming mortgages increased by 24.4 percent from the first quarter, climbing to an estimated $153.0 billion. While that continued to account for the biggest chunk of new business – 52.1 percent – the biggest proportional increase in new lending came in the jumbo mortgage sector, where new originations jumped 34.1 percent during the second quarter. Production of government-insured mortgages, including FHA, VA and rural housing loans, increased...[Includes two data charts]

Originating unsecured consumer loans can be a risky venture, but LoanDepot says it wants to drive growth. Of course, it doesn't have any public shareholders to answer to.

When it comes to new originations, the laggard in the government-insured group has been the FHA program.

“When you get guidance, you don’t always like everything you get," said Bob Davis of the American Bankers Association.

In an environment with limited jumbo originations, the transaction gives Chimera access to a large amount of seasoned residential mortgages that can be securitized into new investments.

Commercial banks and residential mortgages: is the great love affair over? Yes, says Kroll.

It appears that PennyMac Financial Services is in the market to buy MSRs...

“We’re looking for production and we have the appetite,” said Jeff Lemieux, who heads the third-party lending channel of Bayview. "We’d like to hire them as soon as possible.”

The FHFA IG job candidate must be able to withstand "moderate to arduous physical exertion involving walking and standing, use of firearms, and exposure to inclement weather."

The sale of Shelter is one of the largest mortgage M&A deals of the past few months and could mark the beginning of an active second half of industry consolidation.