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.

In letters to two government agencies, a group of 10 Democrat lawmakers said the FHFA should continue to provide access to government-sponsored enterprise MBS guaranties and the Department of Housing and Urban Development should allow FHA mortgage insurance in such communities.

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

Some sellers of residential servicing rights are selling bulk, but are also entering into "flow" components.

The IG's office of the Federal Housing Finance Agency is working with various U.S. Attorneys on reviews of lenders’ loan origination practices to determine their compliance with enterprise requirements.

The civil action entails the alleged taking from WJB of some 5,000 loan files. It should be noted that these aren’t just any LOs – the group in question ranks among the top producers in the nation.

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.

Some 33 mortgage lenders contributed loans to the new jumbo MBS led by Guaranteed Rate with a 9.3 percent share.

At a Senate Banking Committee hearing, Sen. Robert Menendez, D-NJ, criticized FHFA Acting Director Ed DeMarco for his plan to reduce both the conforming loan limit and the high-cost limit.

Industry observers who closely follow the GSEs predict that other private-equity firms and hedge funds will continue to buy the preferred and common shares of Fannie and Freddie, believing they can flip the stock for a quick profit or receive a pay-out down the road.