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Article: Fannie Closer to Slashing Servicing Fee?
- Article from:
- National Mortgage News
- Article date:
- January 24, 2005
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Fannie Mae could be moving closer to slashing its minimum servicing fee to as low as 13 basis points, a move that would radically alter the way mortgage firms manage their receivables.
One Midwestern-based Fannie Mae seller/servicer told National Mortgage News that there is "serious momentum" at the GSE to cut the fee, which now stands at 25 basis points.
Industry executives familiar with the matter told NMN that if Fannie makes the change, its chief competitor, Freddie Mac, would quickly follow suit.
If the servicing fee is cut, it's unclear when the 12 basis points in savings would trickle down to the consumer, the servicer or the end bond ...