The Mortgage Bankers Association (MBA) fears that when the Federal Housing Finance Agency (FHFA) finally unveils its servicing fee structure proposal it will contain just one compensation model, and is appealing to the agency to include more.
According to a letter sent by MBA chief David Stevens, the trade group was told recently by FHFA official Mario Ugoletti that the agency would publish for comment an “exposure document” containing only one fee structure where the servicer of record “would be paid a monthly dollar fee per loan similar to subservicing arrangements that exist today.”
Stevens, in his July 29 letter appeals to FHFA acting director Edward DeMarco to include multiple compensation models and asks that the agency “not show a preference to one particular servicing fee structure over others.”
As reported by ASR sister publication National Mortgage News, Fannie Mae is pushing hard for a change to the fee structure with Freddie Mac and Ginnie Mae leaning toward modest or no changes at all.
Currently, the GSEs pay their servicers a minimum fee of 25 basis points. Some proposals call for that to be cut to as low as three basis points with higher compensation being granted only for delinquent mortgages.
A spokeswoman for the FHFA said, “No final decisions have been made about the presentation of further options for discussion.”
The industry hopes to see a proposal by the end of summer.