These are companies that are set up in order to service mortgages. That frees up lender banks by giving them a profit on their loan, be it at a lower percentage. That allows for the lender bank to give more loans.
The largest cause of the entire mess lies with the government. They are the institution most likely to not only require the lending of money to high risk borrowers, they are also the entity that delays the process through excess litigation opprotunities and paper work.
The real winner is the attorneys. The lifeblood of the court system and government is an ever increasing supply of attorneys. They are the ones representing the banks, the borrowers and the courts.
Whenever you engage in the legal system there is a minimum of three lawyers gaining significant payment, the plaintiff attorney, the defense attorney and the arbiter or judge, also an attorney. The prime job of the judges is to make sure that the other two lawyers get paid. They are the parasites of a capitalistic society.
The real loser is the average citizen. We bear the costs in higher lending rates, taxes and inflation caused by a litigious and over regulated society.