Saturday, May 22, 2010

FHA-HAMP Helped 171 Homeowners Nationwide in April

"171 nationwide in April. So, very well done there. Crackerjack work, I would have to say."

Here's why:
The traditional compensation model for servicers is based on a flat percentage of a loans outstanding in the portfolio. On conventional loans, servicers are generally paid between 0.25 and 375% of total unpaid loan principle in their portfolio. Every incremental dollar spent counseling borrowers and mitigating the losses of the end investor (not their own losses) is cutting into the servicers margin.

No comments: