Fitch Lowers RMBS Servicing Fees

Following on the heels of the S&P announcement, Fitch Ratings reported that it has also lowered its minimum servicing fees for U.S. residential mortgage-backed securities."The economies of scale brought about by portfolio size, advances in servicing technology, and lower default and recovery costs, as well as the increase in individual loan sizes, have reduced the costs associated with servicing residential loans," Fitch said. The new minimum fees for first-lien prime loans are: 17 basis points for jumbo fixed-rate mortgages; 20 bps for jumbo adjustable-rate mortgages; 22 bps for conforming fixed-rate loans; and 25 bps for conforming ARMs. The rating agency said it has been reviewing servicers for over 10 years to provide a standardized analysis that is part of the transaction rating process, and noted that it has been issuing servicer ratings since 1999. Fitch can be found online at http://www.fitchratings.com.