Piercy agreed that "we are in a conundrum of sorts right now with regard to very good quality product being originated with a substantial amount of legacy product being offered and not enough capital being applied to the space." Those kinds of comments would surely be music to the ears of Buffett, who prides himself on buying into out-of-favor industries on the cheap. What's more, Buffett's sterling reputation would give him a decided edge in an industry that has "lost the benefit of the doubt before judges, before regulatory bodies and before certainly debtors counsel," according to Barry Johnson, attorney with SettlePou, a Texas-based law firm. Buffett may have lost out to Nationstar on Tuesday, but it is unlikely his famous elephant gun will remain quiet for long in the mortgage servicing industry. -- Written by Dan Freed in New York. Follow this writer on Twitter.