The average combined loan-to-value ratio on the deal is 71.5 percent, one of the highest levels for the new era of jumbo MBS.

Redwood will have the opportunity to buy jumbo mortgages from FHLB members via the Chicago bank.

The Mortgage Bankers Association said the proposed cure would allow loans intended to be QMs to qualify as such regardless of an inadvertent excess in points and fees.

But why so long? ABA's Rod Alba continued: “Well, not all the rules are done yet."

“This appears to be very good news and is a credit to our collective work with the Coalition for Sensible Housing Policy,” the National Association of Realtors told its members.

The buyer originates mortgages in roughly six western states and is looking to expand into the East Coast to help fill its pipeline.

The amendment would prohibit the GSEs from channeling cash to the NHTF, which was established under the Housing and Economic Recovery Act of 2008.

The mortgage industry has raised concerns about the HAWK initiative because it carries the specter of new fees.

“I’m tired of having the AMC acting as my pimp," said one appraiser. "The current situation is ruining the appraisal profession and turning appraisers into whores for the AMCs."

The 16.4 percent increase was more likely due to the fact that a huge number of reverse mortgages closed in November and December but were not insured by FHA until January, said one lender.