At the same time, the market share of GSE business has been redistributed toward the smaller lenders.

The three biggest servicers in the group – Wells Fargo, JPMorgan Chase and Bank of America – all reported significant declines in servicing income.

Wells Fargo reported a 2.1 percent drop in its correspondent originations from the second quarter to the third, and its year-to-date volume was down 57.3 percent.

An unspecified number of counties would have been assigned lower loan limits, based on house price trends, but the FHFA weighed “other factors” and left them unchanged.

The biggest gain in bank MBS investment during the third quarter was in non-agency securities.

The increase in g-fees last year made all three loan-purpose categories more profitable.

Based on the run-rate of the first nine months, HEL production could top almost $67 billion in 2014, which would be the best year since 2009.

For the first nine months of 2014, the group reported $10.94 billion in net mortgage-banking income, a stunning 43 percent decline from the same period in 2013

Although Wells Fargo officially exited the broker market two years ago, it apparently still does a tiny amount of business through the channel.

In fact, it was the highest quarterly volume in new flow business for the MI sector since the second quarter of 2008.