Standard & Poor's Studies Servicing Fees

Standard & Poor's has reiterated its minimum servicing fees for mortgage loans pooled into S&P-rated securities.

At the same time, however, S&P said it is "currently conducting a study to determine if lower servicing fees can be accepted for transactions with prime jumbo collateral."

Currently, the minimum acceptable servicing fee for U.S. prime jumbo fixed-rate collateral is 20 basis points. For adjustable-rate jumbo mortgages, the minimum fee is 25 basis points. For prime quality conforming size loans, the minimum fees are 25 basis points for fixed-rate loans and 37.5 basis points for ARM collateral. For hybrid ARM collateral, the applicable fixed-rate fee should apply during the fixed-rate period, and the adjustable-rate fee should apply during the adjustable-rate period, S&P said.

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