Housing Finance Reform Needed for Mortgage Servicing Landscape
Jan 12, 2018 ... By Carisa Chappell ... firstname.lastname@example.org
Issues related to servicing are often overlooked when it comes to discussions on housing-finance reform, according to an Urban Institute paper published this week.
With servicing costs dramatically increasing, credit access has decreased and a number of depository institutions are bailing out of the servicing market. The authors of the paper said the high cost of servicing has had a direct impact on a servicer’s bottom line, leaving nonbanks to fill the void left by regulated financial institutions. Reforming and simplifying mortgage servicing could help reduce those costs and motivate institutions that have left the business to return, they said.
This year, the UI plans to release a series of publications, based on the work of its Mortgage Servicing Collaborative that take a closer look at the key servicing issues and offer a few recommendations.
Separately, the Federal Housing Finance Agency is also tackling issues related to servicing this year and charged Fannie Mae and Freddie Mac with assessing the current servicing business model.
(but CockRoach & Wormer are gonna eliminate them)
“Because mortgage servicing is often not central to discussions about major housing policy debates, it is imperative that this critical function be better understood,” they said.