At press time, there were reports circulating that one mid-sized nonbank planning to enter the correspondent acquisition market had pulled the plug and laid off staff. The firm is expected to talk to IMFnews Thursday morning.

According to a copy of an early prospectus provided to IMF, lenders originating loans for the security include Nationstar Mortgage, Stearns Lending, Freedom Mortgage, Fifth Third Mortgage, Real Estate Mortgage Network and RMR Financial.

Citadel, which raised $200 million earlier in the year, has funded $18 million so far this year, but 40 percent of that has come in October. Eventually, it hopes to securitize its production.

Rep. Keith Rothfus, R-PA, brought the agency's breaches to the public’s attention during a hearing on CFPB reform legislation.

Moody’s believes the servicers’ transitions into mortgage originations was positive, but raised concerns about declining refinance opportunities, competition with banks and the potential for nonprime originations.

“Our concern is whether companies have the resources internally to ensure that such arrangements are working as they should,” said one Ginnie Mae official. “Is the issuer adequately protecting itself and Ginnie Mae?”

Mortgage credit is not easing. Meanwhile: Why did the heads of the CFPB and FHFA cut and run at the MBA show?

Mortgage professionals should hang onto their hats. Loan production could plunge by 32 percent in 2014.

“The president believes that Rep. Watt is the very best person to lead the agency at this important time for the housing market and our economy, and that having a confirmed FHFA director in place will help promote certainty for the housing industry,” said a White House spokesman.

CFPB chief Richard Cordray believes "the QM space has been drawn quite broadly" and estimates that more than 95 percent of the loans made in the current market will be deemed qualified mortgages.