The GSEs' largesse is gaining new attention in Washington with the news that the two helped the U.S. government post a budget surplus of $53 billion in December.

As expected, the Mortgage Bankers Association this week lowered its 2014 origination forecast to $1.12 trillion, a $57 billion decrease from its previous estimate. Word of the reduction was making the rounds last week.

MSR sales, in general, are expected to be brisk in the first quarter as lenders sell receivables to make up for declining originations.

Paul Hindman, a mortgage recruiter, told IMFnews that he believes when it comes to hiring, “I believe we’re headed into a relatively flat period,” unless rates swing one way or another.

However, the greatest earnings impact could fall on such mid-sized mortgage firms as PHH Corp., Redwood Trust, and PennyMac Financial Services.

We continue to hear reports that Walter Investment Management is talking to a fairly large nonbank about a possible acquisition.

When it comes to the new QM rule lenders are operating from a position of fear. You can bet that mortgage attorneys in the Washington DC area have racked up the billable hours, holding their clients’ hands and supplying legal advice as the clock strikes midnight.

Some GSE watchers fear that new Federal Housing Finance Agency director Mel Watt might slow GSE risk sharing deals but those concerns may be unwarranted.

In a letter sent to new agency Director Mel Watt, GOP Congressmen Scott Garrett, Randy Neugebauer and John Campbell note that the 10 basis point increase proposed by Watt’s predecessor is not the only fee adjustment up for grabs.

“Transactions submitted with consumer-paid compensation more than 50 bps below [the] broker’s lender-paid tier will be rejected permanently and will not be eligible for re-submission,” Fifth Third Bank is warning.