It's been five long years since Uncle Sam seized Fannie Mae and Freddie Mac. Is time to give them back to shareholders?

Not only is Stonegate Mortgage going public, but it plans to issue jumbo MBS as well.

The program is intended to provide smaller mortgage lenders that lack direct access to the secondary mortgage market with another option for their home buying customers.

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.