The cost to service residential mortgages is rising significantly, according to preliminary research conducted by the Mortgage Bankers Association (MBA).
Speaking at a recent servicing conference MBA Chief Economist Jay Brinkmann said "costs per loan are way up," adding that the reason is loan modifications.
Mortgage bankers with large portfolios are adding both phone lines and additional employees to rework loans, adding to expenses. MBA is working on its annual cost survey which should be released later this year.
On a different topic, Brinkmann said some portfolio lenders that he's spoken with "are happy as can be" because their cost of funds (deposits) are "so low" right now.
