A well-designed system for managing servicing assets will have as an essential function the analysis of risk. This analysis will include determining "predominant risk characteristics" for accounting purposes as well as determining which segments should be hedged, sold, or subserviced.

The system should assist management in determining which loans may profitable to service. Those that are less profitable should be considered for sale or for subservicing; those that are most profitable may indicate a servicing niche.

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