The amount of outstanding mortgage-backed securities increased again in the third quarter of 2013.

A long running class-action fraud lawsuit on behalf of Fannie Mae investors and accounting firm KPMG was settled.

Some 29.3 percent of home purchases completed in November relied solely on cash. That was the third monthly increase in the share of cash transactions.

Fannie Mae will take a closer look at transfers to subservicers. The Federal Housing Finance Agency settled a non-agency MBS lawsuit with Deutsche Bank.

Flagstar will sell the servicing rights on about half of its portfolio to the real estate investment trust and subservice the loans.

Limited examination resources and staff turnover at the Federal Housing Finance Agency remain a concern, according to the FHFA's Office of Inspector General.

Bexil American Mortgage partnered with a private real estate investment trust to launch a correspondent program. Meanwhile, New Jersey filed a lawsuit against Credit Suisse regarding non-agency mortgage-backed securities issued before the financial crisis.

The Federal Reserve will slightly decrease the amount of its monthly purchases of agency mortgage-backed securities but agency MBS issuance might decline by even more than the Fed's planned taper.

Originations of home-equity loans are up in 2013, led by credit unions.

Sales of several bulk portfolios of mortgage servicing rights were still pending as yearend approached, with talk increasing about a busy year in the mergers and acquisitions market for 2014. As always, the driver of such talk was interest rates: Higher rates are causing MSRs to increase in value, while a slowdown in refinancing is scaring many under-capitalized nonbanks into considering the once-unthinkable: selling out or partnering with a competitor. Originations are...