In general, many mortgage firms that make loans on vacation homes want a downpayment of at least 20 percent.

The resulting lender, which will keep the Ethos name, plans to start originating qualified mortgages in the second quarter of 2014 and non-QMs by the end of the year.

Negative spreads between a fixed-rate HECM loan and advancing future funds at a fixed rate could endanger servicers’ capacity to meet their obligations under the HECM MBS program,

Committee Chairman Jeb Hensarling, R-TX, cited a letter from a mortgage banking constituent who said his company is being forced out of the residential lending business because of the cost and complexity of regulatory compliance.

New York regulators want to know whether the additional costs will be passed onto consumers. Ellie Mae is not commenting.

Why doesn’t the MBA, NAHB and National Association of Realtors just come out and say what they really mean, which is this: Leave Fannie and Freddie alone, return them to their shareholders and they’ll never buy another ALT A or subprime mortgage again.

Despite the results, four of the top 10 depositories sold more loans into the secondary market in 2013 than they did the year prior.

“Not only will FHA continue to go after the big banks, but they’re going after the mid-sized banks as well,” said Andrew Henscel, whose firm defends originators.

The nation’s banks and thrifts used a combined $406.1 billion in advances as of Dec. 31, 2013, up 26.7 percent from the third quarter and a 21.6 percent increase from the same period a year earlier.

Mortgage banking is an ugly business right now, but lenders are hoping that the first quarter will prove to be the nadir and that better times are ahead.