A reduction in mortgage servicing fees by the GSEs would be a "meaningful positive" for the industry, according to analysts with KBW's Keefe Bruyette & Woods.

In a note issued Wednesday in reaction to an American Banker story that reported that the GSEs are considering such a move, the analysts wrote that gain-on-sale revenues booked when originators sell mortgages are set by the market and should encompass the true cost of servicing. A lower servicing fee would not change overall gain-on-sale revenues, but simply reduce the amount of mortgage servicing rights booked and increase cash gains.

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