As the government works toward GSE reform, Keefe, Bruyette & Woods (KBW) says reform for the Federal Housing Administration (FHA) should also be a top concern. Though FHA has raised premiums, sold off distressed loans, and reduced its share of low down payment loans to counter its shrinking mortgage insurance fund, KBW's analysts underscore the need for longer-term measures of change, and they say reform legislation currently on the table is unlikely to pass.

The CFPB's mortgage servicing standards--including the Qualified Mortgage (QM) definition and the Ability-to-Repay rule--take effect in less than 90 days. Some bankers have indicated they might limit their offerings to only QM products as the transition is made, and many are concerned that as a result, their operations may run counter to the Equal Credit and Opportunity Act, implemented by the Federal Reserve's Regulation B. Those fears, however, are unfounded, regulators say.

The Residential Standards Governance Committee of the Mortgage Industry Standards Maintenance Organization (MISMO) has elected Randy Gilster as its chairman. Gilster, a 20-year financial services veteran, is SVP of business capability development at Wells Fargo Home Mortgage.

Employers hired 148,000 new workers in September, the Bureau of Labor Statistics reported Tuesday. The hiring pace in the U.S. slowed compared to previous months, yet the unemployment rate slipped to 7.2 percent from 7.3 percent in August. In September, the number of long-term unemployed-meaning those jobless for 27 weeks or more-was little changed at 4.1 million. The government says the number of long-term unemployed has declined by 725,000 over the past year.

With third-quarter numbers from most of the industry's heavy-hitters in, analysts with FBR Capital Markets say their forecasts--$1.6 billion in mortgage volume for 2013 followed by $1.4 billion in 2014--are still well within reach, even though they argue that declining interest rates and lower overall loan volume translated to disappointing mortgage numbers last quarter.

According to multiple reports, JPMorgan Chase CEO Jamie Dimon has negotiated a $13 billion settlement with the U.S. government to settle questions surrounding the bank's sale of mortgage bonds prior to the crisis. The deal is said to include relief for consumers as well as payments to federal agencies and fines. If finalized, it will be the largest payout in history among settlements between financial firms and the government.

Existing-home sales slipped in September after reportedly reaching their highest level in nearly four years in August, according to the National Association of Realtors. Analysts attribute the drop to declining affordability resulting from limited inventory and rising home prices. Total existing-home sales fell to a seasonally adjusted annual rate of 5.29 million last month. August's sales were revised downward to 5.39 million.

One in five loans originated in today's mortgage market will not meet the requirements of the Consumer Financial Protection Bureau's (CFPB) Qualified Mortgage (QM) rule that goes into effect in January, according to an audit of new loans by ComplianceEase. Of the 20 percent of loans that would not qualify, ComplianceEase determined fee levels would be the disqualifier for about half. The QM rule allows for points and fees of up to 3 percent.

The dollar volume of homes donated or sold at a discount through JPMorgan Chase's Community Revitalization Program has crossed the $250 million mark. Initiated in 2009 as an effort to help customers and communities cope with the housing crisis, the program has seen more than 5,300 properties donated or sold to nonprofit housing organizations over the last few years.

The once-volatile housing market is seeing a continuing trend toward a healthy market balance, according to a recent report from Realtor.com. At the same time, however, the report finds patchy progress among local markets across the country, and Realtor.com warns that imminent economic factors could pose a significant threat to the improvements that have been made so far.