Mortgage lenders, who have devised many methods of dicing up loans for sale to investors, are now poised to repackage a slice of the business they have always retained: the servicing income.

Standard Federal Bank of Troy, Mich., has struck a deal with Fannie Mae to securitize servicing income on $500 million of loans. It is expected to be the first of a number of negotiated deals between lenders and the mortgage agency.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.