Clayton noted 907 compliance findings from its review. However, Fitch said the findings were deemed to be out of scope and waived by Fannie due to the limited scope of its post-close review for compliance.

The low profile of the FHLBs, which has served the system so well in the past, has become a “sizable policy risk” as the relatively few people who will be directing housing finance reform know what the system does.

“The exodus of a majority of the pre-crisis nonbank entities within the mortgage arena provides an opportunity for banks to re-establish their position within the mortgage market,” according to regulators in Connecticut.

Mortgage banking officials tracking the issue believe that if the agency is going to lower Fannie Mae/Freddie Mac loan limits for 2014 it will need to codify those changes by mid- to late October to give lenders time to update their technology systems.

FHA and VA are urging mortgagees and lenders to extend all possible assistance to borrowers who have been furloughed, laid off or suffered a decline in income because of the government shutdown.

KBRA pointed out that one jumbo MBS issuer said it will accept mortgages where lenders have implemented procedures to either close the loans with an exception or review IRS transcripts post-closing.

The Federal Housing Finance Agency holds the keys to the Fannie Mae/Freddie Mac loan limit kingdom, but it’s giving no clues – or interviews – as to where it’s headed on the issue. Meanwhile, pressure is mounting on the regulator to do nothing. As far as the mortgage industry is concerned, it knows a change is coming and hopes that when FHFA finally lowers the current high-cost limit of $625,500 the implementation date will come deep into the second quarter of 2014, or at the very least, March 31.

The most important take away from this week’s loan limit reduction news: Congress warning DeMarco that he’d better defer to them on loan limits. His reply: radio silence. Meanwhile, Wells tosses Freddie overboard, sort of.

“Any future announcement will be made in conjunction with stakeholders to minimize volatility in the MBS market,” Ginnie Mae said, emphasizing that no decision has been made on the issue.

There is no mention in the SunTrust filing how much HUD/FHA might receive. A spokesman for the bank declined to provide a number to Inside Mortgage Finance.