Fannie Mae and Freddie Mac combined did less business in single-family mortgage-backed securities in 2013 than the previous year while a growing share of business came from small and mid-sized lenders, according to an Inside The GSEs analysis. For the year, the two GSEs produced $1.161 trillion in single-family MBS, down 8.4 percent from their overall production in 2012.

A key factor in the upswing in private MI share of Fannie/Freddie business was the relatively steadier volume in purchase-mortgage securitization compared to refinance loans.

The non-agency MBS market is stuck in "limbo until we know where the GSEs are going,” said Steve Abrahams, head of securitization and MBS research at Deutsche Bank Securities.

Speculators in Fannie Mae/Freddie Mac junior preferred shares will benefit if they can prove loan loss reserves at the two were over-stated.

The integration of TILA and RESPA has "been a goal almost since the time the two statutes were issued, and certainly from the time the good-faith estimate began focusing on loan terms,” said Benjamin Olson of BuckleySandler.

Flagstar, which ranks eighth among all originators according to Inside Mortgage Finance, funded $6.4 billion of home mortgages in 4Q, a 17 percent decline from the prior period.

Some of the largest bank owners of mortgage servicing rights are lining up to sell small- and medium-sized chunks of their portfolios in what likely will turn out to be a record year for sales. Bank of America – which unloaded several huge packages last year – is now in the market with an $8 billion Ginnie Mae MSR portfolio. Wells Fargo late this week confirmed that it will sell a $39 billion package of servicing rights backed by non-agency loans to Ocwen Financial Corp., and hinted that more deals are ahead. An industry advisor who works the servicing market told...

Three House Democrats plan to introduce a new housing-finance reform bill that would leverage the Ginnie Mae mortgage-securitization infrastructure and private mortgage insurers. The reform proposal by Reps. John Delaney (MD), John Carney (AL) and Jim Himes (CT) would establish a system of government reinsurance for eligible mortgage-backed securities. The idea is to leverage the government’s capacity and market’s ability to price risk, they said. Their plan calls...

Comments made Wednesday by the Treasury Department’s point man on GSE reform, Michael Stegman, did not go unnoticed by employees of Fannie Mae and Freddie Mac.

Hoping to jump start the non-agency MBS market, the Structured Finance Industry Group plans to establish a limited number of options on various rep and warrant issues.