"Buying loans from some nonbanks could damage the enterprises' reputations," the FHFA IG says.

Year-to-date MBS issuance by Fannie and Freddie was down 60.9 percent from the first half of 2013.

Morgan Stanley’s regulatory action plan supplements the firm’s global risk-management program for third-party servicers, which is currently in place.

“If the cap is 2.75 percent, it doesn’t leave much, but you have to keep in mind that the lender is building ‘everything else’ into the note rate,” said Marc Savitt.

Several other nonbanks have entered the non-QM space the past few months including Bayview through its Lakeview unit, Impac and others.

Here’s a question to ponder: what does Jamie Dimon like less? Loan brokers or the FHA?

Surprise: most of the growth by nonbanks has been by smaller mortgage bankers.

One California-based mortgage broker had this to say: “All the CFPBs is doing is driving up costs, further confusing the consumer, and wasting even more tax payer dollars.”

Under the terms of the settlement, Citigroup will pay $4.5 billion in cash and provide $2.5 billion in consumer relief.

Mortgage brokers who read the guidance said it reveals how little the young regulatory agency understands about the industry. If a broker has the financial ability to obtain a warehouse line of credit...