TITLE

The Case Against Lowering The Minimum Servicing Fee

AUTHOR(S)
Heid, Michael J.
PUB. DATE
March 2005
SOURCE
Mortgage Banking;Mar2005, Vol. 65 Issue 6, p24
SOURCE TYPE
Periodical
DOC. TYPE
Article
ABSTRACT
This article focuses on the issue of reducing the size of the minimum service fee in mortgage market. Many investors and brokerage firms have privately voiced concerns about the impact that such a move would have on the market for mortgage backed securities. Some have gone public with their concerns. Proponents for the reduction offer a number of arguments for the change, including reduced volatility of earnings, lower capital and hedge costs, no impact on prepayments, and servicing fee alignment with servicing cost.
ACCESSION #
16521831

 

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