Reactions Mixed to Fannie Mae’s Decision to Lower Minimum Servicing Fee for TBA Pools
January 5, 2006
With the issue of minimum servicing fees for agency MBS still simmering, Fannie Mae last month lowered its minimum fee requirement for servicing certain adjustable-rate mortgages – a move that elicited mixed reactions from the mortgage banking industry and Wall Street. Fannie on Dec. 15 lowered the minimum servicing fee for most first-lien conventional ARMs to 25 basis points from 37.5 bps. The change now matches the minimum servicing fee for standard 30-year fixed-rate…