The Federal Housing Finance Agency (FHFA) is expected to release its long-awaited proposal on changing servicing compensation by July with three main options being offered to the industry, according to servicing advisors close to the issue.

The three options that the industry will get to comment on involve restructuring the servicing payment from the current 25 basis point minimum to one where just three to five basis points are offered; a 12.5 basis point payment; and a flat fee paid to the servicer of $7 to $10 per month per loan.

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