Warren Buffett-watchers were taken by surprise earlier this month when his Berkshire Hathaway company bid $2.45 billion for the unprofitable mortgage business of ResCap, pushed into bankruptcy by its parent, Ally Financial, according to The Financial Times.

However, Buffett’s intervention was only the most recent foray by a private investor into mortgage servicing, the paper notes. While the industry is dominated by big lenders, private equity groups are making a foray into the sector.

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