It was also the lowest three-month volume since the fourth quarter of 2008, not long after dramatically higher “emergency” loan limits were put in place by the agencies.

Correspondent sellers fret that some of the largest players might shut the door on them for a different reason: they can’t deliver enough volume in an origination-challenged market.

It’s far too early to draw definitive conclusions about the success of the QM rule and its overall effect upon the market.

Maybe more Millennials are buying homes than people think: "A large portion of our applicants are in the Millennial generation. I am seeing them in our office every day," said Jim Picard of Denali Alaskan Federal Credit Union.

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.