Are investors making a big mistake by speculating in Fannie Mae/Freddie Mac common and preferred?

Fannie Mae and Freddie Mac are continuing to shrink their retained portfolios as mandated by their regulator.

Investors have stepped up to the plate, buying new large bulk MSRs put out for auction by Interactive Mortgage Advisors.

Investment funds are continuing to salivate over mortgage servicing rights.

Walter Investment, which posted strong earnings for 1Q13, is in exclusive talks to buy $10 billion of mortgage servicing rights.

Ocwen has registered preferred shares with the NYSE. The sale will benefit WL Ross & Co.

Besides entering the servicing arena, Two Harbors Investment Corp. is building an originator network to issue non-agency jumbo mortgage-backed securities on its own.

Nationstar Mortgage is getting serious about the origination business. On Tuesday it revealed plans to purchase a high-volume call center operation.

Fannie Mae and IBM are working together on at least one big technology project: a new data center. But is the relationship about to go even further? Meanwhile, MBS issuance stayed hot in April.

In the first quarter nonbanks continued to gain significant market share in the residential servicing business, according to a new and exclusive ranking from Inside Mortgage Finance.