FHFA chief Mel Watt noted: “In Treasury’s view, it’s a legislative decision” to change the terms of the bailout agreement.

Ruth Lee, executive vice president of TCS, expects a big year in the scratch-and-dent market, thanks to the GSEs.

Prospect Mortgage is the top contributor with a 9.1 percent share, followed by Ditech Mortgage (8.6 percent) and Skyline Financial (7.1 percent). All three are nonbanks.

Roughly $164.77 billion of securities backed by commercial mortgages were issued last year, down just 0.6 percent from 2013, which was a banner year.

The repo is contingent upon PennyMac – a publicly traded REIT – maintaining minimum tangible net worth of $860 million and minimum unrestricted cash of $40 million.

Any monkeying with the GSE charters must get past two of the most powerful lobbying groups in all of housing finance...

The money will flow directly into the U.S. Treasury Department, which controls the senior preferred shares of the two government-sponsored enterprises.

For the year, the 20 banks earned $3.090 billion from mortgage banking, down 30.5 percent from their income in 2013.

The FHFA proposal, however, could spell trouble for certain nonbank servicers with limited resources.

An official involved in the non-agency MBS market said it’s easier to sell private placements than it is to meet requirements for publicly registered deals