Industry advisors familiar with MIC told Inside Mortgage Finance that the nonbank VA refi specialist was almost sold to a bank this past summer, but the deal fell through.

Correspondents are an especially good source of purchase mortgages. During the third quarter, purchase mortgages accounted for over half (50.5 percent) of correspondent-originated loans securitized by Fannie Mae and Freddie Mac.

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.

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.

The secondary market for mortgage servicing rights is red hot and shows no signs of slowing, even with the government partially closed.

Even due diligence firms such as Allonhill LLC of Denver have trimmed staff because their bank clients no longer need to conduct as many forensic reviews on legacy loan files. Allonhill was recently sold to Stewart Title, which hopes to grow the firm’s presence in the jumbo and nonconforming sectors.

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.

Laurie Goodman, director of the Urban Institute’s housing finance policy center, predicted that the delay in issuance of jumbo MBS will be short.

“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.