In his comments to reporters, FHFA Director Mel Watt did not rule out Fannie and Freddie engaging in principal reductions to help troubled consumers who have GSE loans.

Compare ratios have been criticized by some factions of the mortgage industry. Some lenders have complained that the ratio is one reason why originators do not target underserved markets.

In a wide-ranging speech – and in supporting documents – Mel Watt also vowed that the GSEs will continue to permit “compensating factors” when weighing a decision to guarantee mortgages where the debt-to-income ratio is north of 43 percent.

Residential originators are getting more confident about lending outside the parameters of the qualified mortgage rule.

On the M&A front, a new report from Compass Point Research & Trading estimates that if PHH Corp. finds a way to sell its mortgage and fleet divisions, the stock should be worth $30 a share.

Banks were largely unwilling to sell off HEL holdings in 2013, according to MountainView Capital Group, an advisor on whole loan sales.

But don’t expect FHFA Director Mel Watt to mention g-fees or LLPAs when he makes his second public speech Tuesday at the Brookings Institution.

All lenders authorized to process VA loans automatically are required to maintain a QC plan and execute it in the course of originating government backed mortgages.

A somewhat large Midwestern-based nonbank is now entertaining takeover bids. A deal could happen within 90 days, IMFnews has learned. Stay tuned…

Members of the Senate Banking, Housing and Urban Affairs Committee from each party said there is interest on Capitol Hill in moving technical corrections legislation aimed at the Dodd-Frank Wall Street Reform and Consumer Protection Act. However, housing finance reform legislation comes first, said Sen. Bob Corker, R-TN, and Sen. Heidi Heitkamp, D-ND, in comments to attendees at the Independent Community Bankers Association of America’s recent 2014 Washington policy summit. Neither explained exactly why housing reform is the priority, but one observer speculated that, in football terms, “it’s probably because housing reform is closer to the goal line.” Given the suddenly deteriorating prospects for the leading measure in that regard, the so-called Johnson-Crapo bill, that doesn’t bode well for those...