Arbor National Holdings Inc. reported that it increased its mortgage-servicing portfolio by 155% in the quarter ended Aug. 31, to about $4.2 billion.

The company also said it was experiencing prepayments at an unusually low annual rate of 16.6%. Major mortgage banks and the secondary-market agencies have been reporting runoff rates of 30% to 40%. Even with originations surging, most lenders have been running hard to build their servicing slightly or merely hold onto what they already have.

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