Even due diligence firms such as Allonhill LLC of Denver have trimmed staff because their bank clients no longer need to conduct as many forensic reviews on legacy loan files. Allonhill was recently sold to Stewart Title, which hopes to grow the firm’s presence in the jumbo and nonconforming sectors.

Mortgage banking officials tracking the issue believe that if the agency is going to lower Fannie Mae/Freddie Mac loan limits for 2014 it will need to codify those changes by mid- to late October to give lenders time to update their technology systems.

There is no mention in the SunTrust filing how much HUD/FHA might receive. A spokesman for the bank declined to provide a number to Inside Mortgage Finance.

The most important take away from this week’s loan limit reduction news: Congress warning DeMarco that he’d better defer to them on loan limits. His reply: radio silence. Meanwhile, Wells tosses Freddie overboard, sort of.

A company owned by Lone Star appears to have won the bid on Flagstar MSRs. Meanwhile, MountainView hits the market with a new deal.

Members of the House believe FHFA does not have the legal authority under HERA to reduce GSE loan limits.

It's not looking pretty for gain-on-sale margins this quarter. However, interest rates will remain low.

The auction is being held on the government’s behalf by DebtX. In total, 29,000 nonperforming loans will be offered for sale.

Meanwhile, smaller mortgage lenders that do not have delegated underwriting authority are reporting delays on getting loans closed.

The CMC letter follows one sent last night by 15 housing and mortgage-related trade groups to Acting FHFA Director Edward DeMarco, asking him not to lower the GSE loan limit, while questioning the legality of such a change.