“We are expecting to see people trying to inflate their income or hiding and downplaying their monthly obligations,” said Interthinx's Ann Fulmer.

The appraisal requirements required by the Dodd-Frank Act apply to higher-priced mortgages that don’t meet qualified mortgage requirements.

Fitch says nonbank servicers resolve delinquencies at a significantly faster pace than banks, partly due to the loss-mitigation requirements for the five big banks included in the $25 billion national servicing settlement.

Treasury could withhold HAMP incentive payments to CitiMortgage, but noted that after considering all relevant factors, it has chosen not to at this time.

Although there are only a few weeks left in 2013, a few large mortgage servicing deals may get done yet.

Due diligence was completed on 33 percent of the loans by American Mortgage Consultants. The firm found compliance exceptions regarding Truth in Lending Act requirements, right to cancel and HUD-1 forms.

Kroll Bond Rating Agency late this week released proposed criteria for rating non-QMs, making it the second rating service to formally seek comments on such criteria.

A new type of subprime lending may be emerging and Ocwen Financial hopes to be a trailblazer.

In other subprime news, industry veteran Jon Daurio was recently in New York talking to potential investors about his new nonbank venture, Nikkael Capital Corp.

The jumbo market accounted for 16.7 percent of total mortgage originations during the third quarter of 2013 and was much stronger than other sectors.