Commercial banks are earning a ton of dough on residential servicing fees, but nonbanks are seeing an erosion in profits.

FHFA has been analyzing approaches for reducing Fannie Mae and Freddie Mac loan limits across the country, "and any such change would be announced with adequate advance notice for implementation on January 1, 2014" the regulator said.

FHFA blames part of the GSEs’ significant losses on subprime MBS, which JPMorgan and 16 other financial institutions sold to Fannie and Freddie.

Some warehouse lenders are offering significant concessions and price breaks to keep their nonbank customers happy.

Paul Rozo, CEO of Paramount Residential Mortgage Group, said his company’s application volume is down roughly 20 percent since rates jumped a few months back, but some of his competitors are seeing declines of up to 50 percent.

The FDIC will raise the question of a 30 percent downpayment but don't expect to see it in the final QRM rule.

Just one nonbank, PHH Mortgage, ranked among the top ten originators of jumbo loans in the first-half. Guaranteed Rate ranked 12th and Quicken 16th.

The trend toward private MI is likely to continue in anticipation of the FHA Solvency Act of 2013, which is awaiting action on the Senate floor.

A housing lobbyist added that, “Right now it’s a matter of timing. Will in come in October or a little later than that?”

In May, Sen. Bill Nelson, D-FL, flagged the disturbing consumer credit reporting practice of lumping a short sale within the same industry code as a foreclosure in consumer credit reports.