A ranking of the top 50 lenders in terms of third-party originations, based on agency mortgage-backed securities issued in the first half of 2014. Includes break-outs by lender for Fannie Mae/Freddie Mac, Ginnie Mae, correspondent and broker.

In keeping with its strategy to reduce its holdings of less-liquid assets, Freddie Mac announced last week the GSE’s first sale of what it calls “deeply” delinquent loans. It remains to be seen if the sale of the $659 million package of distressed single-family mortgages from its portfolio is a one-off or the first of more to come. Asked whether more non-performing loan auctions might be ahead, a company spokesman declined to comment.

A federal judge in Manhattan last week ordered Bank of America to pay a $1.27 billion penalty for losses suffered by Fannie Mae and Freddie Mac from Countrywide Financial’s “Hustle” program for pumping dubious Alt A loans to the GSEs. The bank also is reportedly nearing a settlement with the Justice Department over other charges. Last October, the DOJ and the Securities and Exchange Commission successfully proved in court that Fannie Mae and Freddie Mac lost some $850 million from thousands of loans acquired through Countrywide’s “high-speed swim lane” program – known as HSSL or “Hustle.”

Mortgage buybacks and indemnifications may be off their peak in terms of volume, but they are widely expected to continue for the foreseeable future, especially for Fannie Mae and Freddie Mac loans, according to experts during a webinar sponsored by Inside Mortgage Finance Publications last week. Amanda Raines, a partner in the Washington, DC, office of the BuckleySandler law firm, told webinar participants that more buybacks are definitely on the way. On the Fannie /Freddie front, the attorney pointed out that despite recent settlements, the Federal Housing Finance Agency’s Office of Inspector General encouraged the continued pursuit of buyback claims and repurchase rights.

Fannie Mae and Freddie Mac reported a combined $5.0 billion in net income during the second quarter of 2014, down 46.2 percent from the first three months of the year. Compared to the first half of 2013, GSE profits were down nearly 82 percent, though both companies posted strong earnings during the three-month period ending June 30, 2014. Both GSEs are coming off a banner 2013 when each company’s earnings were super-charged by several one-time items – including the capture of each company’s deferred tax allowance, and numerous non-agency lawsuit settlements.

With origination volumes sucking wind this year, plenty of mortgage companies are pondering whether now is the time to sell, but so far few deals of any size have been consummated. That may change in the coming months.

As Fannie Mae and Freddie Mac buyback demands have tapered off, lenders continue to face aggressive government efforts to indemnify the FHA for losses, but they do have options available to them that can work in their favor. During a webinar sponsored last week by Inside Mortgage Finance, Amanda Raines, a partner with the BuckleySandler law firm in Washington, DC, emphasized that FHA indemnification demands have continued this year, with an aggressive use of the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act. That has led...

Officials at Nationstar Mortgage suggest that regulatory issues won't prevent the nonbank servicer from growing.

Shortly before Congress left town for its annual summertime break, Sen. Mary Landrieu, D-LA, introduced S. 2641, legislation to amend the Truth in Lending Act to provide that residential mortgage loans held in portfolio would be deemed qualified mortgages for purposes of satisfying the requirements of the Consumer Financial Protection Bureau’s ability-to-repay rule.

Mortgage origination fees and third-party fees increased in the past year, according to a new survey by Bankrate.