David Akre of Five Oaks projects that in a few years, issuance of non-agency jumbo MBS could reach $300 billion annually.

The MBS lawsuits target Barclays, Credit Suisse, Goldman Sachs, JPMorgan Chase, Morgan Stanley, Residential Funding Securities, Royal Bank of Scotland, UBS and Wachovia.

Citadel Servicing CEO Dan Perl said "the phones are ringing like a son-of-a-gun" at his nonprime lending shop.

The jumbo features that Moody's worries about include super senior support bonds, exchangeable securities, principal-only bonds, and pool interest-only bonds.

The talk has prompted speculation that the FHFA could lower the conforming loan limit to $400,000 or, as conservator of the GSEs, direct them to reduce high-cost loan limits.

Banking regulators believe delinquency rates on HELOCs soon may rise sharply upward as a significant number of second liens reach the end of their draw period.

The shift from distressed property sales to non-distressed creates opportunities for mortgage bankers because distressed properties are often purchased by investors with cash.

Almost 19 percent of the loans in the new Penny Mac jumbo MBS were originated by mortgage brokers.

Analysts are now suggesting that higher interest rates along with rising home prices will constrain housing affordability.

The Comptroller is warning against a bank engaging in an exchange of participation interests in REO without first consulting with the regulator.