Experts Call GSE Servicing Fees Excessive, Behind the Times
September 2, 2016
Panelists, including former Federal Housing Finance Agency Director Ed DeMarco, said that mortgage servicing has evolved over the years but the costs are still decades behind the times. During a recent seminar on mortgage servicing hosted by CoreLogic and the Urban Institute, industry experts discussed rising costs and the frequency of servicing transfers.Panelists, including DeMarco, now a senior fellow at the Milken Institute, said that mortgage servicing compensation has not changed in decades as the servicing industry itself has undergone what he called “profound changes. The minimum servicing fee for Fannie Mae and Freddie Mac has been stuck at 25 basis points since the 1980s, he said.