A rough measure of production profitability, the ratio of production income to origination volume, fell from 179 basis points in the second quarter to just 84 bps in the third. Back in the Wonderland of early 2012, this ratio was 203 bps.

The jumbo market accounted for 16.7 percent of total mortgage originations during the third quarter of 2013 and was much stronger than other sectors.

Elsewhere, in the report FHFA claims significant progress has been made on the development and initial testing of the GSEs’ common securitization platform.

The "good" news for lenders is that interest in the mortgage industry is still strong despite declining volumes and shrinking profit margins.

As a group, banks and thrifts reported net earnings of $4.76 billion on their mortgage-banking activity during the third quarter, a 42 percent drop from the second quarter.

Residential originators have altered their processes and interactions with brokers to reduce potential underwriting and appraisal defects.

According to an analysis from Inside MBS & ABS, barring a sudden, unexpected shift in strategy, the Fed by the end of this year will exceed the total MBS holdings of commercial banks and thrifts.

So far this year, Fannie Mae and Freddie Mac have resolved some $30.99 billion of buyback demands through a combination of loan repurchases and indemnifications for the GSEs’ losses, nearly double the $15.66 billion in resolutions recorded during the first nine months of 2012, according to an analysis by Inside Mortgage Trends, an affiliated publication. The figures refer to the unpaid principal balance of loans subject to a repurchase demand, not the actual payment by the lender. Fannie and Freddie reported a combined $3.53 billion of mortgage repurchases and other buyback resolutions during the third quarter of 2013, the lowest quarterly amount in three years.

Mortgage-banking operations owned by banks and thrifts of all sizes reported huge declines in earnings during the third quarter, although some organizations fared significantly better than others, according to a new Inside Mortgage Trends analysis of call-report data. As a group, banks and thrifts reported net earnings of $4.76 billion on their mortgage-banking activity during the third quarter. That was down 41.7 percent from the second quarter, and it marked the lowest three-month ... [Includes one data chart]

One of the worst-kept secrets in mortgage technology is that Ellie Mae, which went public almost two years ago, is entertaining offers. But can the firm – the brainchild of technology veteran Sig Anderman – get a deal done before originations fall even more? Not surprisingly, Anderman isn’t taking press calls on the issue. As a rule – and to avoid disclosure violations with the Securities and Exchange Commission – public firms usually don’t discuss the blow-by-blow on takeover talks. However, that isn’t ...