However, there was some good news. Flagstar reported residential originations of $7.19 billion, a 21 percent gain from 2Q.

An investor in GSE stock, Continental’s counsel in the case is Cooper & Kirk, the same law firm that represents Fairholme, a large hedge fund that bought up GSE stock last year.

The new jumbo security from JPMorgan Chase is scheduled to be issued on Oct. 30.

At press time, the firm’s share price was getting crushed, down 25 percent on the day to a new 52-week low of $19.89.

After all, didn’t America suffer a housing “depression” because credit was too loose? Some GOP conservatives in Congress live by the edict: those who can own; those who can’t rent…

Under the CFPB’s new rule, financial institutions will be able to post privacy notices online instead of distributing an annual paper copy.

HUD's Castro noted that the VA program limits its loan guarantee to a maximum of 25 percent, leaving many lenders exposed and reluctant to offer VA-guaranteed loans.

One mortgage executive added: “Watt is trying to do the right thing, but I’m not sure he will get there. It’s good to see the government admit that the pendulum went too far.”

Non-agency MBS sponsors will be allowed to retain the risk portion on vertical or horizontal tranches of the security or a combination of the two.

Servicing brokers expect a land rush of servicing deals before yearend.