The Mortgage Bankers Association said it is now adamantly opposed to any radical change in servicing compensation and has launched a "call to action" campaign, urging its members to heavily lobby the Federal Housing Finance Agency.
The group is circulating a sample comment letter for servicers, urging them to tell the regulator, “The current system has served the market well for decades...”
MBA's play comes amid reports a nationwide legal settlement on robo-signing allegations will be inked by yearend.
The trade group, late last week, wrote to FHFA strongly urging the overseer of Fannie Mae and Freddie Mac not to reduce the 25 basis point fee paid to servicers of GSE loans.
Under one FHFA draft, loan processors would receive $10 per month for processing performing loans.
Over the past six months MBA officials, their members and servicing advisors have had an open dialogue with the agency regarding fees, but there's a growing concern FHFA may be leaning toward a flat “fee for service” plan.
In its 42-page comment letter (including exhibits), MBA complains that FHFA's proposal would be a step of moving “toward more government involvement” in housing finance at a time when the White House is trying to wean mortgage banking off of government support.
Moreover, the trade group—headed by former FHA chief David Stevens—complains that Fannie Mae's recent purchase of $74 billion of MSRs from Bank of America puts the GSE in the position of being a direct competitor of private market servicers.
MBA does not name B of A in the letter, but as reported by National Mortgage News, the deal was consummated in the third quarter. To date, no purchase price has been disclosed. For well over a year now, the agency has been contemplating changing the current 25 basis point minimum servicing fee for GSE loans and is seeking public comment.
