Wells Fargo remained the top mortgage servicer in the industry at the end of 2012, but the company posted a rare decline in its portfolio during the fourth quarter and is reportedly considering selling some of its massive $1.873 trillion portfolio. A new Inside Mortgage Finance ranking and analysis of the servicing market underscores the gains made in market share by a handful of nonbanks and some regional banks, while some of the top servicers continue to pare their businesses. The servicing industry faces a significant challenge in that increased regulatory requirements are raising operational costs at a time when the overall market continues to decline. On the upside, much of the damage from the housing recession has already occurred...[Includes one data chart]

Residential mortgages sourced through the correspondent channel and sold to Fannie Mae and Freddie Mac increased by 26 percent in 2012 compared to the year before.

Morgan Stanley recently increased its ownership stake in Fortress which in turn controls a large block of Nationstar stock.

Nationstar Mortgage has agreed to buy the settlement services unit of Equifax.

The Federal Housing Administration is cracking down on down payment assistance programs, tracking the source of gift money.

Lawmakers worry about FHA's financial condition during Wednesday hearing.

First Guaranty is experiencing strong growth in its servicing business. Meanwhile, lenders worry about higher net worth requirements from the GSEs.

City National Bank of Los Angeles is entering the mortgage warehouse business.

Ally Bank will originate and keep jumbo mortgages in the bank's portfolio.

FHA is looking at $133 billion of troubled mortgages.