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No Movement on Servicing Fees.
Washington -- Top officials at Fannie Mae and Freddie Mac have expressed their willingness to some industry leaders that they would like to slash the minimum servicing fee but for now it appears that no action is imminent.
Mortgage banking executives, speaking under the condition their names not be used, said the two GSEs understand the rationale for cutting the fee to 12.5 basis points (from 25 basis points) but both are so overwhelmed with fixing their accounting problems while focusing on pending GSE regulatory legislation that a change will not come until their woes are behind them.
"There's no momentum right now from the GSEs," said one veteran mortgage executive.
Meanwhile, the Mortgage Bankers Association has released a new report that says seller/servicers that favor slashing the minimum servicing fee will look to "alternative" measures to help manage their housing receivables if the two GSEs don't make a change.
The report discusses the pros and cons of slashing the fee but MBA notes that among its members there "has been little discussion" about a compromise over the issue.
The trade group's members have varying opinions on whether to cut the minimum. "The debate we have heard has been about two options - a reduction in the fee minimum to 12.5 basis points or maintenance of the 25 basis points status quo - and there has been little discussion of whether any level in between the two would be the right level," MBA says in its report.
The trade group notes that its members' opinions "range in intensity" and that a "substantial minority of ...
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