Harvard's Don Layton on creating more competition for Fannie and Freddie: “I have not encountered any knowledgeable people who think it could happen quickly."

Mortgage Grapevine: MSR auctions have been few and far between of late, but all that may soon change. Meanwhile, Stearns Lending has secured the cooperation of its largest bondholder, PIMCO, to reduce its debt load. Now, it's just a matter of time and working with the bankruptcy court.

The government-sponsored enterprises plan to use a modified version of the Secured Overnight Financing Rate as an alternative to the London Inter-Bank Offering Rate for new originations of adjustable-rate mortgages.