A GSE bill? Since Congress and President Obama have such a strong track record of working together on legislation we know how that’s going to turn out…

Fitch warned that about 25 percent of the collateral received C or D grades for material violations or lack of documentation.

The top contributor to the new jumbo MBS from FirstKey is CMG Financial with a 13.8 percent share. Cornerstone, Bank of Internet and Impac also provided product.

Republicans have never been big fans of the GSEs and there’s plenty of Democrats who aren’t so sure about the government “guaranty” as well...

“It has been clear to us for some time that the market has a need for products like this," said Two Harbors executive William Roth.

Some investors have pointed out that Ocwen’s origination volume is small compared to its MSRs and that historically the company has never been competitive in the origination market.

Total non-agency MBS held by banks and thrifts in the second quarter of 2014 fell 9.5 percent compared to 2Q13, largely driven by runoff.

Redwood insists the company prefers to issue jumbo MBS rather than sell whole loans, but the current pricing is just too good to pass up.

Apollo's Commaroto said the REIT is bidding on loans, but is still considering whether to acquire non-QMs that way or partner with a lender to receive a more steady flow of product.

Meanwhile, Redwood posted $45.0 million of net income in the third quarter of 2014, almost triple of what it earned in 2Q.