Clayton noted 907 compliance findings from its review. However, Fitch said the findings were deemed to be out of scope and waived by Fannie due to the limited scope of its post-close review for compliance.

KBRA pointed out that one jumbo MBS issuer said it will accept mortgages where lenders have implemented procedures to either close the loans with an exception or review IRS transcripts post-closing.

Laurie Goodman, director of the Urban Institute’s housing finance policy center, predicted that the delay in issuance of jumbo MBS will be short.

While standardization was the focus of jumbo investors, perhaps the bigger concern for participants is that most investors said they were looking to buy almost anything other than new jumbo MBS.

Peters Sack of Credit Suisse said the bank portfolio bid is currently much stronger than the economics for issuing jumbo MBS.

Laurel Davis, a vice president at Fannie Mae, said the GSE learned from Freddie’s transaction and the pending risk-sharing deal from Fannie is set to receive an investment grade rating from Fitch Ratings.

Redwood Trust and Credit Suisse, the jumbo MBS sector’s two biggest players, slowed their securities issuance during the third quarter.

Critics contend that jumbo MBS investors don’t have access to mortgage documents.

All five mortgage servicers participating in the settlement will be subject to tougher testing, said Joseph Smith, the settlement’s monitor.

As the government shutdown continues and many federal workers go without pay checks, there’s a growing concern that these potential borrowers will see their credit scores get dinged.