A mortgage executive who works in the Florida market said he is tired of seeing his deals slowed down because a title company owned by a builder was forced upon a borrower.

The sale is notable not only for its size, but for the fact that MBS and Morvest – partners on this auction – don’t normally sell servicing rights as part of their advisory practices.

The latest tally from Inside The GSEs has Fannie and Freddie repaying all of their borrowings from the U.S. Treasury plus an additional $50.6 billion – money that has gone directly into the government’s coffers.

MBA continues to believe that, given the lack of reserves, eventually the GSEs will need to take a draw from Treasury, said Dave Stevens.

There has long been a concern in the market that if either GSE has a negative net worth, that investors will stop buying their MBS, which would cause the home buying process in America to crumble.

Meanwhile, loan originations at the company inched up to $4.9 billion in 3Q from $4.8 billion in the second quarter.

The red ink marks the first time in four years that the government-sponsored enterprise booked a quarterly loss.

Keep in mind that hedging can be a tricky business, whether you're a GSE or not...

Discussing the new integrated disclosure rule known as TRID, Ishbia noted that loan brokers “adapted wonderfully and we are closing a lot of TRID loans.”

OCC chief Thomas Curry added: “It’s clear to me that these reserves need to rise to account for the increasing credit risk we are seeing in the system."