Not only is Citigroup selling $61 billion in legacy MSRs, but the megabank is trying to clear out its legacy buyback exposure.

Citadel Servicing CEO Dan Perl said "the phones are ringing like a son-of-a-gun" at his nonprime lending shop.

Besides Citi, a handful of large depositories are in the midst of wrapping up sizable MSR auctions this week, including offerings from Wells Fargo and Flagstar Bancorp.

A new audit of the Mutual Mortgage Insurance Fund is due in October and speculation about its cash reserves is not good.

David Akre of Five Oaks projects that in a few years, issuance of non-agency jumbo MBS could reach $300 billion annually.

Fannie Mae seller/servicers also can dodge the maintenance fee if they have $25 million in Fannie servicing or paid $5,000 in technology fees.

Art Ringwald, who helped put Bank of America on the mortgage map before departing in 2001, is looking to do "roll-ups," among other things.

Loan officers, so far, have been spared the layoff carnage, but that may change depending on where volumes wind up.

The talk has prompted speculation that the FHFA could lower the conforming loan limit to $400,000 or, as conservator of the GSEs, direct them to reduce high-cost loan limits.

The bloodletting in Citigroup's mortgage division may just be starting.