Large banks and some smaller shops continue to test the servicing sales market this fall, with bulk offerings from Citigroup and Flagstar garnering attention from investors. Industry advisors who track the market say Flagstar recently wrapped up bidding on a $12 billion package of mortgage servicing rights on newly originated loans. “These were pristine quality receivables, stuff that was funded over the past few months,” said one observer who saw the bid package. This summer, Flagstar – in an effort to capture the value of MSRs held on its balance sheet – sold...

The general consensus is that despite their conservatorship status, the GSEs are still considered private companies, even though Treasury controls their senior preferred shares.

The U.S. homeownership rate fell to 63.9 percent in 2012, according to figures compiled by the Census Bureau through its “American Community Survey.” In case you’re keeping tabs, it’s the fifth year in a row that the rate has gone south.

Critics contend that jumbo MBS investors don’t have access to mortgage documents.

FHA claims it is still endorsing loans but only 2 percent of its staffers are on duty. Also, the USDA mortgage program lies dormant.

All five mortgage servicers participating in the settlement will be subject to tougher testing, said Joseph Smith, the settlement’s monitor.

As the government shutdown continues and many federal workers go without pay checks, there’s a growing concern that these potential borrowers will see their credit scores get dinged.

According to interviews with investors in Freddie Mac’s $500 million Structured Agency Credit Risk bond, 50 different companies bought into the deal.

The U.S. Attorney’s Office for the District of Connecticut, on behalf of the RMBS Working Group, is seeking an order to compel Clayton to cooperate with a subpoena issued in early July.

Wells Fargo is the latest megabank to settle buyback claims with a GSE. Who might be next?