One possible catalyst for a MIP cut could be poor results from a forthcoming HMDA report that shows FHA as well as Fannie Mae and Freddie Mac are not servicing low-income borrowers very well.
In a recent SEC filing Two Harbors noted that after the second quarter ended it bought $4.7 billion of Fannie Mae servicing rights from an undisclosed seller.
Who cares about large hedging losses? Not the FHFA, which so far has shown no interest in increasing the allowable amount of capital the two can retain...