During an Inside Mortgage Finance webinar on Thursday, participants from expressed frustration on the ability to get new jumbo MBS deals because of the recent rapid rise in rates.

Implementation of state-specific servicing standards like California’s would impose "divergent and conflicting standards" that will add costs to future home buyers and create confusion, said one MBA official.

Some non-agency participants have called for an immediate return to conforming loan limits of $417,000, which were in place in 2008 before Congress established “emergency” loan limits for high-cost areas.

“Confusion and uncertainty around representations and warranties standards continue to cause lenders to add their own overlays to the existing GSE credit standards,” said MBA vice chairman Bill Cosgrove.

It appears that looser underwriting has been driven by an increase in the number of lenders participating in the HARP program and copy-cat efforts that allow for LTVs of greater than 95 percent.

Investors accounted for 20 percent of home purchases in May, based on the three-month moving average, the third consecutive decline in investor share.

The pool of mortgages in Shellpoint's first deal has a combined loan-to-value ratio of 65 percent, slightly lower than other recent non-agency MBS.

In addition to having the most failed metrics, CitiMortgage was found to be in “widespread” noncompliance with the timeliness requirement to notify a borrower of any missing documents in his modification application.

While some banks have started to securitize jumbo mortgages, the vast majority of jumbo originations remain in portfolio.

MBA pushes for GSE AU engines to be synchronized. Meanwhile, a factoid of mortgage history: Treasury chief Paulson wanted Fannie and Freddie put in receivership.