Analysts Weigh Whether New Servicing Procedures Will Affect Performance of RFC’s Subprime Deals
April 2, 2004
A major issuer of subprime MBS has made changes to its servicing practices that are designed to shore up its loss mitigation efforts. But whether those changes will actually benefit investors remains to be seen. Homecomings Financial, a unit of Residential Funding Corp., began to tweak its servicing practices early last year, when problems at Fairbanks Capital Corp. and a Securities and