State regulators note that their concerns about nonbanks relate to significant growth in recent months prompted in part by increased capital requirements for banks.

In his report, Guggenheim analyst Jaret Seiberg writes, “There is still anger in Congress over having to put cash into the enterprises in the first time."

Lack of Congressional funding, however, has put a damper on the initiative. And lenders generally oppose proposals where they would be charged a subsidy fee.

Investors interviewed by IMFnews weren’t sure what to think of the latest news from Ellie Mae.

Despite the not-so-good news on applications, one warehouse lender suggested to IMFnews that larger lenders are suffering much more than smaller firms.

Former employees of the firm told IMFnews that they are perplexed as to why the company’s owners did not file a bankruptcy filing in federal court.

Ocwen Financial, once again, ranked first among all subprime servicers with a portfolio balance of $105.78 billion at March 31, a decline of 31.7 percent over the past 12 months.

On his LinkedIn page, Rowland notes that Carrington offers “compensation levels that are among the highest in the industry.”

Over the past few years Envoy Mortgage had a strong emphasis on purchase-money lending and in early 2013 branched out into third-party lending. Its original focus was on retail.

“These are factually and legally complex cases and don’t trust anyone that thinks this is a slam dunk for any one of the parties,” predicted legal expert David Reiss.