WASHINGTON – The Mortgage Bankers Association is calling on the government not to make proposed changes in the GSE servicing compensation model.
The MBA objects to a plan by the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, which calls for paying loan processors $10 per month for performing loans. In its letter, the group said such a proposal is another step “toward more government involvement” in housing finance at a time when the White House is trying to wean mortgage banking off government support.
In addition, in its letter the Mortgage Bankers Association complained that Fannie Mae's recent purchase of $74 billion of MSRs from Bank of America puts the GSE in the position of being a direct competitor of private market servicers. The figures were reported by National Mortgage News, an affiliate of Credit Union Journal.
In September FHFA issued a “discussion paper” on the topic, offering just two models: a flat fee for service (FFS) and a 20 basis point payment with a five BP reserve.
To date, the agency has yet to offer any estimate on how much a servicer would be paid for processing troubled loans, National Mortgage News reported.
