Meanwhile, MountainView Servicing Group is also in the market with a new MSR offering: $224 million of receivables backed by Fannie Mae and Freddie Mac product.

The cost of mortgage compliance was a topic making the rounds at the recent ABS Vegas show in Nevada. Attendees, of course, wanted to know who might pay for all the new added costs.

Most of what Fannie and Freddie earn in the fourth quarter will go directly into the coffers of the U.S. Treasury Department.

Who at the GSEs (or at the Federal Housing Finance Agency) was responsible for telling Fannie and Freddie to set aside so much money for loan losses and were those assumptions way off base?

Speculators in Fannie Mae/Freddie Mac junior preferred shares will benefit if they can prove loan loss reserves at the two were over-stated.

Flagstar, which ranks eighth among all originators according to Inside Mortgage Finance, funded $6.4 billion of home mortgages in 4Q, a 17 percent decline from the prior period.

Comments made Wednesday by the Treasury Department’s point man on GSE reform, Michael Stegman, did not go unnoticed by employees of Fannie Mae and Freddie Mac.

Industry advisors expect Wells Fargo to sell additional packages of mortgage servicing rights in the months ahead.

One servicing advisor told IMFnews that the regulator “now has the last word on all MSR transfer approvals. It began in December and has slowed the process a bit.”

The hunger for GSE speculation is also causing some investors to buy Fannie/Freddie common which has been rising of late, but not by much. However, one GSE watcher believes that buying the common, "is a fool’s game."