Servicing became less profitable for many lenders in the third quarter, and it was pressed to cover further deterioration in loan originations and secondary market. (Includes data chart.)

Thanks to rising interest rates and stunted production volume, banks and thrifts posted their lowest earnings for mortgage banking since the last quarter of 2008. (Includes data chart.)

A number of nonbanks are offering home-equity loans and other products as a way to take advantage of the huge mass of mortgage debt that's unlikely to pay off early.