Roughly 40 to 50 percent of Citadel's production goes on its balance sheet.

Over the past few weeks, a handful of mortgage firms have announced acquisitions of smaller shops with an eye toward expanding their origination footprints or servicing portfolios. And investment banking advisors told Inside Mortgage Finance that between now and yearend, the mergers and acquisitions market should be brisk as owners of privately held companies finally head for the exits, realizing that when it comes to originations, 2015 likely won’t be much better than the current year. The largest nonbank to test the M&A market this year is...

Some mortgage executives told us privately that residential originations could fall by 20 percent year.

Company CEO Brian Hale downplayed the news of an offering book, noting that it hired an investment banker because over the past 12 months Stearns has been approached by “a number of interested investors.”

Although there appears to be strong interest these days in mortgage banking firms, the outlook isn’t particularly bright for commercial banks.

“The conservatorships are a huge barrier to entry for private capital,” said former FHFA Acting Director Edward DeMarco.

Dovenmuehle and Cenlar have long dominated the sector, but a growing number of small and midsized players have made inroads in recent years.

The Mortgage Bankers Association wants the FHFA to push Fannie and Freddie to go easy on mortgage buybacks.

Among the four largest holders of first liens, only Bank of America decreased its portfolio in the second quarter.

Is it time to sell shares in Fannie Mae and Freddie Mac?