If Flagstar changes hands, what might become of its loan broker business, the second largest in the nation?

Meanwhile, MountainView Servicing Group is also in the market with a new MSR offering: $224 million of receivables backed by Fannie Mae and Freddie Mac product.

Industry advisors expect Wells Fargo to sell additional packages of mortgage servicing rights in the months ahead.

One servicing advisor told IMFnews that the regulator “now has the last word on all MSR transfer approvals. It began in December and has slowed the process a bit.”

The hunger for GSE speculation is also causing some investors to buy Fannie/Freddie common which has been rising of late, but not by much. However, one GSE watcher believes that buying the common, "is a fool’s game."

Moody’s notes that all three have grown their production operations – a positive – but question whether over the long term whether they can compete with banks in the “prime” market.

Ginnie Mae gave seller/servicers a heads-up on the longer approval times in late November at an “education summit” in Washington attended by both new and existing issuers.

The mortgage industry is once again at a crossroad. What will save lenders? Answer: cash-out refis, non-QM loans, and 80-10-10s.

Former CFPB executive Raj Date hopes to be in the non-QM market by mid-year 2014.

It’s likely that little in the way of money is changing hands on the deal. By selling the MSRs to Fannie, Citi is also settling the payment of “compensatory” fee claims the GSE is owed by the bank.