Breaking News
  • Morgan Stanley settles for $3.2 billion over 'deceptive' mortgage bond practices

    Morgan Stanley will hand out hundreds of millions of dollars in consumer relief and fork over hundreds of millions more to state governments as part of $3.2 billion settlement over its “deceptive” mortgage bond practices in the run-up to the financial crisis, the New York Attorney General’s Office said Thursday. Click the headline to read more.

Servicing The Ticker

American Banker: Compensation structure for servicers led to issues

Loan servicing is one of the least understood aspects of mortgage banking, but one that has wreaked havoc with borrowers and at times posed significant financial volatility for banks and other firms engaged in this activity. 

A major contributing factor to the unprecedented problems in servicing nonperforming loans during the mortgage meltdown is the simple flat pricing structure for compensating servicers for their activities.

Source: American Banker
Reprints
Comments powered by Disqus