Commoditization of mortgages, plus technology that eases the refinance process, and the regulatory environment, all contributed to the decision.

The $4 trillion-asset bank posted its highest-ever annual profit but also said its CEO succession plan is still in the works.

Freddie Mac shares rose to $4.14 at 12:30 p.m. in New York Friday, Fannie Mae's stock climbed to about $4.23, each up 22% from the previous day's close.

Mortgage originators should expect more of those interest rate dips that took place in September, but when they happen is the unknown factor, economists said.

Lower rates during the period helped independent mortgage bankers make money on their originations but they posted losses on servicing.

The Dallas-based bank swung to a loss in the third quarter after reclassifying a large bundle of multifamily loans that it plans to offload under a recently announced strategy pivot.

Analysts peppered CEO Jane Fraser with questions about whether Citigroup, already hit hard by its regulators, could face asset growth restrictions. She said there is "absolutely nothing" in the works that could impact the megabank's businesses.

The megabank's scale hasn't made it immune from the deposit wars that have crimped bank profits. But the "stabilization" that Wells Fargo flagged is a positive sign as other banks start reporting earnings.

The megabank reported a big increase in credit costs for the third quarter, which included a reserve build of $1 billion.

The Canadian lender's cushion for potential credit losses nearly doubled in the third quarter, while its U.S. business idled.