State regulators considering increasing capital requirements for nonbanks should hold off, according to an analysis by Kroll Bond Rating Agency. With encouragement from the Financial Stability Oversight Council, state regulators are considering prudential regulatory standards for nonbank mortgage companies. “We believe that large nonbank companies, and particularly seller/servicers in the mortgage sector, do not require formal capital requirements and other types of prudential regulation,” KBRA said in a report authored by Christopher Whalen, a senior managing director at the rating service. Nonbank servicers appear...