If you're looking for another factor in the red hot MSR market, consider this: housing receivables keep shrinking.

Not only is Citigroup selling $61 billion in legacy MSRs, but the megabank is trying to clear out its legacy buyback exposure.

It’s no secret that Nationstar has been an active bidder on MSRs the past two years, taking down some huge packages of product, including receivables from Bank of America.

Citadel Servicing CEO Dan Perl said "the phones are ringing like a son-of-a-gun" at his nonprime lending shop.

Besides Citi, a handful of large depositories are in the midst of wrapping up sizable MSR auctions this week, including offerings from Wells Fargo and Flagstar Bancorp.

David Akre of Five Oaks projects that in a few years, issuance of non-agency jumbo MBS could reach $300 billion annually.

The MBS lawsuits target Barclays, Credit Suisse, Goldman Sachs, JPMorgan Chase, Morgan Stanley, Residential Funding Securities, Royal Bank of Scotland, UBS and Wachovia.

Fannie Mae seller/servicers also can dodge the maintenance fee if they have $25 million in Fannie servicing or paid $5,000 in technology fees.

Loan officers, so far, have been spared the layoff carnage, but that may change depending on where volumes wind up.

The talk has prompted speculation that the FHFA could lower the conforming loan limit to $400,000 or, as conservator of the GSEs, direct them to reduce high-cost loan limits.