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Article: Ginnie Mae Cuts Servicing Fee.
- Article from:
- Mortgage Servicing News
- Article date:
- March 1, 2003
- Author:
CopyrightCOPYRIGHT 2003 SourceMedia, Inc. 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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The Government National Mortgage Association has revamped its 18-year-old Ginnie Mae II securities program by reducing its minimum servicing fee in a move that could lead to a similar change in the conventional market.
Ginnie Mae reduced the minimum servicing fee from 44 basis points to 19. However, lenders who prefer to receive excess servicing fees can still receive the traditional 44 basis point fee.
The change, part of a serious of reforms designed to improve pricing for the Ginnie Mae II program, may put pressure on Fannie Mae, Freddie Mac and MBS investors to reduce the servicing fee on conventional loans sold into the secondary market. ...