If the U.S. defaults on its debt payments, will mortgage rates go sky high? Meanwhile, will JPM rescure FHA?

FHA admits it will need a bailout, well sort of.

It’s no secret that Nationstar has been an active bidder on MSRs the past two years, taking down some huge packages of product, including receivables from Bank of America.

Fannie Mae and Freddie Mac will determine new risk ratios for the mortgage insurance industry, not the Federal Housing Finance Agency.

FHA needs money, right? Some of that cash may come to the government insurer in a roundabout way from JPMorgan Chase.

Here's an odd turn of events: Freddie Mac might bail out Uncle Sam. Meanwhile, the mortgage insurance industry continues to mend.

Besides Citi, a handful of large depositories are in the midst of wrapping up sizable MSR auctions this week, including offerings from Wells Fargo and Flagstar Bancorp.

A new audit of the Mutual Mortgage Insurance Fund is due in October and speculation about its cash reserves is not good.

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

The bloodletting in Citigroup's mortgage division may just be starting.