The role of nonbanks in servicing single-family mortgages has increased tremendously over the past five years, mostly at the expense of large depository institutions. In response, the government-sponsored enterprises (Fannie Mae and Freddie Mac) and Ginnie Mae have issued new capital, liquidity, and net worth requirements for servicers of their mortgages. We examine these new regulations and conclude that while the recent steps taken to ramp up nonbank regulation are a good starting point, more needs to be done to ensure government agencies and taxpayers are adequately protected against the risks posed by the nonbanks under all economic environments.