Millions of delinquent or foreclosure loans in need of default management assistance have created demand far and beyond the capacity of existing specialty servicers that, in return, is fostering the creation of mega-servicer shops.

Some insiders worry that servicing market changes of the recent past will lead to the birth of large specialty servicers and the too-big-to-fail mentality that eventually brought some of the nation’s largest banks so close to bankruptcy that they were bailed out of failure by federal funds. It will all depend on how the mortgage industry will react to these changes.

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