Federal Housing Finance Agency Re: Servicing

Mortgage Action Alliance, Inc. (MAA) members are encouraged to take action today by sending written comments to the Federal Housing Finance Agency (FHFA) stating that:

  • No change is needed to the current servicer compensation model as this model has served the market well for decades;
  • The changing regulatory environment makes consideration of any change to the model premature at this time, especially in light
    of the ongoing process to develop national servicing standards; and, If FHFA is determined to adjust the current compensation structure, the cash reserve model is the best option and also the
    only option that meets the stated goals of FHFA.

On September 27, 2011, FHFA issued Alternative Mortgage Servicing Compensation, a discussion paper seeking public comment on two servicing fee structures. The first structure, which was proposed to FHFA by MBA, would make only modest changes to the existing fee structure. It would require the servicer to set aside separate cash account within the MBS trust which would be a reserve for unusual non-performing loan servicing costs. If not needed, the cash would inure to the servicer. The second fee structure proposed by FHFA in the discussion paper, would make some fundamental
changes to the current fee structure.

After thorough review and analysis by member committees, MBA submitted comments to FHFA. MAA members are now urged to take similar action.

COMMENTS MUST BE RECEIVED TO FHFA BY DECEMBER 26th.

To download a sample letter to send to FHFA, click HERE.

To review the FHFA’s September 27th discussion paper, click HERE.

For additional background provided on MBA’s Resource Center for Residential Mortgage Servicing for the 21st Century, click HERE.

MAA is the premier grassroots lobbying organization of the real estate finance industry. The mission of the Mortgage Action Alliance is to further build a network of individuals dedicated to strengthening the industry’s voice and lobbying power in Washington, DC and state capitals. Please forward this email to your industry colleagues and encourage them to take action as well. If they are not MAA members, they will first need to join for free by clicking here.

Thank you!
Please direct comments
or questions to wkooper@mortgagebankers.org.