At least two mid-sized nonbanks on track to fund up to $10 billion in mortgages this year are on the auction block and could get sold in the months ahead. That is, if their owners don’t get too greedy. With interest rates continuing to head north and loan application volumes weakening, the dynamics in the mergers and acquisitions market may be shifting. Over the past two years, lenders have been posting the best profit margins ever, which in turn has caused them to increase their asking price, that is, should they entertain the thought of selling. In general, nonbank lenders that are...