Still, purchase-mortgage originations fell sharply in the fourth quarter, dropping almost 23 percent from the previous period, according to figures compiled by Inside Mortgage Finance.

New York regulator Lawsky raised concerns about the servicing cost-savings long touted by Ocwen, which are achieved via technology and employees largely located outside of the U.S.

Although Flagstar led the pack, it was the only bank to rank among the top five sellers of brokered loans.

However, ARMs remain relatively rare in the MBS market. Fannie Mae, Freddie Mac and Ginnie Mae securitized only $41.6 billion of ARMs for all of last year, about 2.7 percent of their total MBS production volume.

A nonbank wholesaler, Carrington is allowing credit scores as low as 580 for FHA and USDA mortgages, along with some VA loans.

Some analysts believe the $200 billion estimate on flow MSR transactions might be a bit low.

Also, Morgan Stanley recently increased its stake in Arch Capital Group to 6.3 percent. Arch owns CMG Mortgage Insurance, which is being renamed Arch Mortgage Insurance Company.

The entire group is moving to the Connecticut-based nonbank from a company called Mortgage Services, a subsidiary of First State Bank of Mendota, IL.

According to interviews conducted by Inside Mortgage Finance, Lau’s company, Pingora Loan Servicing, has amassed roughly $10 billion in MSRs in less than nine months.

The new ownership filing on Walter Investment comes at a time when short interest in nonbank mortgage firms is increasing.