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Will Fannie Slash Servicing Fee?(Federal National Mortgage Association)
Washington -- Fannie Mae could be moving closer to slashing its minimum servicing fee, industry executives told Mortgage Servicing News.
If Fannie does in fact cut its servicing fee (currently set at 25 basis points), it's expected that Freddie Mac would quickly follow suit.
At press time, both GSEs had declined to comment. However, key players in the mortgage industry - including top seller/servicers and trade group officials - were set to meet here in early February to discuss the issue.
One Midwestern-based Fannie Mae seller/servicer told MSN that there is "serious momentum" at the GSE to slash its minimum fee by one-eighth (13 basis points).
A few months back Countrywide Home Loans CEO Angelo Mozilo publicly called upon the GSEs to reduce the servicing fee.
As Mr. Mozilo and others in the industry have pointed out, the 25-basis-point strip that seller/servicers retain must be capitalized and hedged against, increasing costs for any firm that invests in receivables.
Over the past 36 months the servicing industry has tried to manage through what seems like a never-ending wave of refinancings which have caused "impairment" charges to mushroom.
- Ginnie Mae Cuts Servicing Fee.
- Magazine article from: Mortgage Servicing News Collins, Brian March 1, 2003 700+ words
...Mae reduced the minimum servicing fee from 44 basis points to 19. However, lenders...Mac require a minimum servicing fee of 25 basis points. This change by Ginnie...take a position on the servicing fee issue. But Ginnie Mae...
- Change for the better: working toward minimum servicing fee...
- Magazine article from: Mortgage Banking Mozilo, Angelo R. February 1, 2005 700+ words
...mortgage with an average balance has dropped over the last 20 years from about 8 basis points to just 3 basis points today. The minimum required servicing fee of 25 basis points is more than eight times that cost; and today's average fee is about 31...
- Mozilo Thinks GSEs Should Cut Minimum Servicing Fee.(Angelo Mozilo)
- Magazine article from: Mortgage Servicing News Muolo, Paul December 1, 2004 700+ words
...set a minimum servicing fee of 25 basis points. Mr. Mozilo...Association reduced the servicing fee on certain securities to 19 basis points from 44 basis...Fannie/Freddie servicing fee was just 12 basis points. Copyright 2004...
- Mozilo Thinks GSEs Should Cut Minimum Servicing Fee.
- News wire article from: Mortgage Line Muolo, Paul December 20, 2004 700+ words
...set a minimum servicing fee of 25 basis points. Mr. Mozilo...Association reduced the servicing fee on certain securities to 19 basis points from 44 basis...Fannie/Freddie servicing fee was just 12 basis points. Copyright 2004...
- Fannie Mae Okays Increase on Conseco Servicing Fee.
- Magazine article from: National Mortgage News Muolo, Paul March 24, 2003 700+ words
...increase in the servicing fee on Conseco- related...confirmed that the new servicing fee is 125 basis points compared to the...contract fee of 50 basis points. She said she does...a change in the servicing fee will have any financial...
- S&P Reiterates U.S. Prime Servicing Fee Criteria.
- Press release article from: Business Wire August 1, 2003 700+ words
...criteria require a minimum servicing fee of 20 basis points (bps) for U.S. prime...collateral and a minimum servicing fee of 25 bps for U.S. prime...amp; Poor's minimum servicing fee for subprime collateral continues...
- Some Oppose Servicing Fee Cut.
- Magazine article from: Mortgage Servicing News Muolo, Paul March 1, 2005 700+ words
...cut their minimum servicing fee to 12.5 basis points. In early February...slashing the minimum servicing fee, a move that could...reduced the minimum servicing fee on certain securities to 19 basis points from 44 basis points...
- Lower Jumbo Servicing Fee May Not Be a Sign of Things to Come.(Brief Article)
- Magazine article from: Mortgage Servicing News November 1, 2003 700+ words
...previous minimum of 25 basis points. But don't expect...across-the-board servicing fee reductions anytime...unchanged at 37.5 basis points. For prime, hybrid ARMs, the servicing fee is now 20 basis points during the fixed...
Source: HighBeam Research, Will Fannie Slash Servicing Fee?(Federal National Mortgage...