Commercial banks saw a significant improvement in the profitability of their servicing-for-others operations in 2004, according to a new analysis of call report data by Inside Mortgage Profitability. The 40 largest banks in terms of mortgage servicing rights posted a combined $3.89 billion in servicing fee income for all of last year. That was up 69 percent from the $2.30 billion these same institutions reported in net servicing fee income for all of 2003. …