Fannie Mae and Freddie Mac may have to dial back the multifamily spigot if they’re going to meet the targets their regulator wants them to as it seeks to shrink the GSEs’ presence in the space. It looks like it might require a bigger turn of the dial for Freddie than for Fannie. As part of the Federal Housing Finance Agency’s 2013 Conservatorship Scorecard, FHFA Acting Director Edward DeMarco has called for a 10 percent reduction target in GSE multifamily business volume this year compared to 2012.

Declining refinance volume contributed to a marked decline in the GSEs’ overall business during September compared to the previous month, with Fannie Mae seeing a rise volume to the detriment of Freddie Mac, according to a new Inside The GSEs analysis.Fannie and Freddie issued $78.6 billion in single-family mortgage-backed securities during the third quarter, a 20.0 percent decline from August but a 9.0 percent rise for the first nine months of 2013. [Includes one data chart.]

Fannie Mae and Freddie Mac securitized $285 billion of single-family mortgages during the third quarter, an almost 16 percent drop from the previous three-month period. As for the outlook for the fourth quarter, the industry is nervous.

A company owned by Lone Star appears to have won the bid on Flagstar MSRs. Meanwhile, MountainView hits the market with a new deal.

Members of the House believe FHFA does not have the legal authority under HERA to reduce GSE loan limits.

It's not looking pretty for gain-on-sale margins this quarter. However, interest rates will remain low.

Fannie Mae and Freddie Mac plan to test parts of a common securitization platform under development by year-end, according to an official at the Federal Housing Finance Agency. The FHFA separately announced this week what it deemed to be “significant steps” for the government-sponsored enterprises’ planned CSP. A year-and-a-half after the federal regulator announced the project, the platform remains a nebulous goal that GSE officials hope to make exceedingly encompassing and flexible. Speaking this week at the ABS East conference in Miami sponsored by Information Management Network, Wanda de Leo, deputy director of the FHFA’s office of strategic initiatives, said...

Among other things, the Federal Home Loan Banks want to maintain their ability to securitize residential mortgages for their members.

While standardization was the focus of jumbo investors, perhaps the bigger concern for participants is that most investors said they were looking to buy almost anything other than new jumbo MBS.

The auction is being held on the government’s behalf by DebtX. In total, 29,000 nonperforming loans will be offered for sale.