The rapid growth of nonbank special servicers since the mortgage crisis has resulted in a concentration of entities controlling the vast majority of loans in need of a work out, which could present some risks for non-agency MBS, according to a report by Fitch Ratings. Fitch cited industry consolidation, increased specialization and regulation as the primary drivers of the concentration shift toward nonbank servicers. “Historically, servicing was concentrated among the largest commercial banks due to their dominant market share in mortgage origination,” the rating service said. “Today, several nonbank servicers have achieved portfolio sizes that have begun to eclipse their banking counterparts.” Fitch noted...