The Federal Housing Finance Agency (FHFA) is preparing to back away from a controversial plan to overhaul the minimum servicing fees paid on Fannie Mae and Freddie Mac loans, after intense, across-the-board industry opposition to the idea.

Changing the way servicers are currently paid has now been officially placed on the back burner, according to a government source and industry advisors who have worked on the issue with the FHFA.

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