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Article: A pivotal year for servicing. (loan servicing)
- Article from:
- Mortgage Banking
- Article date:
- October 1, 1992
- Author:
CopyrightCOPYRIGHT 1992 Mortgage Bankers Association of America. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Buyers of servicing were out in droves this year looking for newly minted, low-coupon production. But a shortage of sellers, of this very desirable new servicing, sent prices on a rally. The question is how long will any of this last?
Interest rates have fallen fairly steadily in 1992, bringing a rush of refinancing activity and rewarding lenders who maintain efficient loan origination capabilities. However, servicing managers tend to have a more complex outlook on the effects of this year's record originations. They recognize that every refinanced loan represents a prepayment in a servicing portfolio.
What occurred this year has even greater ramifications for ...