The Mortgage Bankers Association of America and several mortgage servicers are worried that the stiff penalties proposed by the Department of Housing and Urban Development’s "treble damages" rule could have a devastating effect on the servicing industry. Fines on servicers that fail to pursue satisfactory loss mitigation, for triple the defaulted claim amount, would have wiped out 72 percent of the industry’s profits from FHA servicing in 1999, even if only 1 percent of loans