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Article: Servicing profits and performance. (mortgage servicing)(Cover Story)
- Article from:
- Mortgage Banking
- Article date:
- June 1, 1997
- Author:
CopyrightCOPYRIGHT 1997 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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Servicers continued to focus on holding down costs in 1996, a new study shows. Direct servicing costs edged up only slightly to $48 per loan compared with $47 in 1995. A new accounting standard clouds measurements of profitability, yet even excluding its impact, servicing per-loan profits of $233 failed to match the peak profit year of 1994.
If you are trying to evaluate mortgage servicing performance, especially in terms of profitability, the rules have changed. While reporting is not yet exactly the same among companies, the items that should be measured and how to calculate them are more consistent and complete among companies than they have been in the past. With ...