Mortgage servicing fees become an area of concern in the wake of the mortgage meltdown. However, the concern is heighten subsequent to the Robo-Signing Scandal. Now with the spotlight squarely focused on the fee structure, the Federal Housing Finance Agency has given marching orders to Freddie Mac and Fannie Mae to work with the Department of Housing and Urban Development to come up with a proposal for a new fee structure and improved standards.
While there is keen interest in fee restructuring to better serve the current market, people like Shelia Blair of the Federal Deposit Insurance Corporation want standards implemented that would require lenders to keep some skin in the game for those loans that they sell or securitized. Mortgage servicing fees are very lucrative for managing non-performing assets. Foreclosed properties have a greater revenue stream for mortgage servicers in comparison loans that are paid on time as agreed. In the wake of the meltdown, mortgage servicing fees become an area of concern, that has prompted a full review of regulation in this area. Ms. Blair's proposal would require lenders to continue to hold on to a portion of the liability after selling or securitizing, in the hopes of creating more accountability and better fiscal management.