The 10 groups question “whether it is appropriate for the GSEs to target private sector returns while in conservatorship.”

A healthy housing recovery boosted mortgage origination volume during the second quarter of 2014, but production remains at relatively sluggish levels, according to a new market analysis and ranking by Inside Mortgage Finance. Single-family mortgage originations totaled an estimated $295 billion during the second quarter, up 25.5 percent from the first three months of the year. The first quarter of 2014 was the worst production environment for the mortgage industry since the end of 2000, even falling below the mark set at the depth of the financial crises in the fourth quarter of 2008. In fact, the most recent April-to-June cycle brought...[Includes three data charts]

Regarding portfolio retention, the GSE found that over the next three months, 56 percent of nonbanks hope to grow their loan portfolios.

Freedom Mortgage reported continued growth in originations in the second quarter of 2014, largely driven by correspondent production. The nonbank has focused on agency mortgages with strong underwriting, retaining servicing on the loans. Freedom had $5.72 billion in originations in the second quarter of 2014, a big 48.7 percent increase from the previous quarter and up 31.1 percent compared with the second quarter of 2013. Officials at the nonbank touted Freedom’s strength while originations have declined overall. “While the mortgage industry is experiencing a downturn, Freedom Mortgage has increased...

FHA single-family endorsements fell 55.6 percent in the first four months of 2014, compared to the same period last year, but the impact was far from uniform across the country. A new analysis by Inside FHA Lending, an affiliated newsletter, shows that housing markets where FHA loan limits were reduced this year have seen a bigger drop in FHA business than elsewhere in the country. In counties with lower FHA loan limits, production in the first four months of 2014 was down 57.7 percent from a year ago, while production in markets where there was no change fell 51.3 percent. FHA lending declined...

Or perhaps the FHA is concerned that the private mortgage insurance industry will continue to gain market share at its expense?

While affluent borrowers prefer to obtain mortgage financing from their primary bank, some in this category are willing to shop, particularly when competing lenders offer lower interest rates or more attractive loan products.

“There’s lots of talk of companies being for sale right now,” said Paul Hindman, managing director of Management Advisors Executive Search, “but not too much talk of deals closing.”

Mortgage industry representatives are quite leery about the CFPB proposal. The comment period ends August 22.

Flagstar, a thrift that is also the largest remaining depository in the table funding sector, earned $25.5 million in the second quarter compared to a $78.9 million loss in 1Q.