The odds are currently zero that Congress will find a legislative solution to the future of Fannie Mae and Freddie Mac this year, which is causing anxiety for the man charged with being both conservator and regulator to the government-sponsored enterprises: Mel Watt, director of the Federal Housing Finance Agency. Moreover, there is a growing concern among mortgage bankers that severe interest swings to the downside could cause a large net loss at Freddie in the first quarter of this year, a loss so large it will force the GSE to ask the U.S. Treasury for a draw on taxpayer funds. And it will happen...

Private MIs finished third in agency refinance loans, partly because the Fannie/Freddie program for refinancing underwater borrowers continued to slow down.

“We see a lot of multiple offers, especially for first-time buyer ranges,” said one real estate agent based in Washington State.

Fairholme is feeling the heat from investors over poor performance, with Berkowitz noting the fund’s returns have “put us in the dog house.”

Meanwhile, Fairholme’s case against the government is still pending and Berkowitz said from a legal standpoint, “We’re getting closer to the finish line…”

Thanks to falling interest rates, some warehouse managers are starting to hear their telephones ring with requests for new credit.

Schilling cites a 2009 amendment to the DOJ’s FCA policy that expanded the boundaries of where it can be applied. He said now a claim can include a request for money made to a recipient of government funds.

Several groups of traditional insurance companies have substantially increased their borrowing capacity from the FHLB system as well.

Compared to an estimate released at its annual convention in October, the trade group's production forecast is up 12.3 percent.

Baldwin noted that experienced mortgage bankers have grown to expect seasonality, but that doesn’t mean they have to like it…