Fannie seems to be blaming the FHFA for the departure of former CEO Tim Mayopoulos. The mortgage giant also warns: “If there were several high-level departures at approximately the same time, our ability to conduct our business would likely be materially adversely affected…”

The Fannie Mae/Freddie Mac loans backing the MSRs are top-heavy in Texas collateral at 46.8% of the total.

The Treasury Department argued producing the documents would be “unduly burdensome” and “disproportionate to the needs of the case.”

It would be a radical change, but the FHFA may allow nonbank mortgage firms to become FHLB members, giving them access to advance window...

FHFA Director Mark Calabria: "That might be fine for a normal company, but these are companies that are in conservatorship. They’re essentially in bankruptcy.” 

Calabria stressed the plan is process-based rather than calendar-driven. He also pointed out that the two mortgage giants will have to be adequately capitalized and make appropriate changes to their culture.

KBW on Ocwen: “While the company is setting up MSR [mortgage servicing rights] financing facilities, management noted returns on available MSR trended down, though the company did lower its targeted ROE [return on equity] on agency MSR to 8.5% from 9.5%."

The U.S. Treasury Department – the owner of Fannie/Freddie senior preferred – is the entity that owns the keys to the ownership kingdom…

In the same 10-Q filing, Fannie makes it clear that it does not like one bit the prohibitions the FHFA has placed on its ability to offer volume-based pricing discounts to its seller/servicers. It also chafes at the notion of “similar restrictions" and being forced to operate a cash window for small lenders...