Workstream 5, Servicing Compensation Meeting on November 30, 2018
On November 30, thirteen members of the Mortgage Servicing Collaborative convened for a subcommittee meeting on servicing compensation as part of work stream 5. HFPC staff noted that we do not expect consensus from MSC members on a single option or solution to address servicing compensation. It was reiterated that HFPC’s goal is to lay out the history of the debate and outline the options for addressing concerns with servicing compensation. There was broad subcommittee agreement that there is a high cost and burden to servicing non-performing loans. There was concern raised by subcommittee members that the mortgage servicing industry is not building enough capacity to handle the next economic downturn.
There are several options HFPC will examine with subcommittee members to address servicing compensation:
- Status quo or leave the system as is
- (a). Fee for service, paid for by guarantors
- (b). Fee for service, paid for by insurance fund
- (a). Central utility for NPLs, paid for by loan guarantors
- (b). Central utility for NPLs, paid for by insurance fund
The next step is to develop a framework, based on the above options, for further MSC member discussion.