8/3/2019 SIFMA-TCH-CMBP-HPC-MBA-FHFALetter12-22-2011
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Mr.EdwardDeMarco 2 December22,2011
Association5appreciatetheopportunitytocommentontheAlternativeMortgageServicing
CompensationDiscussionPaper(theDiscussionPaper)oftheFederalHousingFinanceAdministration(theFHFA).
Eachofourorganizationshassubmittedseparatecomment
letterspresentingtheperspectivesofourrespectivemembers.
However,wewouldliketotake
this
opportunity
to
stress
some
common
themes
that
we
have
raised:
First,foravarietyofreasonsthatareenumeratedinourindividualletters,webelievethatafeeforserviceapproachwouldhavenegativeconsequencesfortheindustryandforthe
customersthatweserve.
Whilesomeofthedrawbacksaremoreapparentforexample,
reducingtheincentivetoinvestinthenecessaryinfrastructureaswellastheservicersskin
inthegameothersareinherentlyunknownforexample,theimpactonindustry
structureandcompetition.
Nevertheless,eachofourorganizationsbelievesthatthe
potentialcostsofadoptingsuchanapproachfaroutweighthepotentialbenefits.
Second,evenifonedisagreeswithourbasicassessment,adoptingsuchastructurewouldinevitablyproducelargechangeswithuncertainconsequencesforlenders,servicers,
investorsandborrowers.
Inordertojustifysuchamove,theFHFAwouldhavetopresent
strongandcompellingevidencethatafeeforservicestructurewouldbeinthelongterm
interestsofthemortgagemarketandtheconsumersthatitserves.
Inourview,FHFAhas
yettodoso.
Asaresult,weseenoreasonwhytheFHFAshouldcontinuetopursueafee
forserviceapproach,which,bytheagencysownadmission,representsadramatic
departurefromthecompensationstructurethatisnowinplace.
membercompaniesoriginateapproximately75%andservicetwothirdsofmortgagesintheUnitedStates.
HPC's
missionistopromotethemortgageandhousingmarketplaceinterestsofmembercompaniesinlegislative,
regulatory,andjudicialforums.
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TheMortgageBankersAssociation(MBA)isthenationalassociationrepresentingtherealestatefinance
industry,anindustrythatemploysmorethan280,000peopleinvirtuallyeverycommunityinthecountry.
HeadquarteredinWashington,D.C.,theassociationworkstoensurethecontinuedstrengthofthenations
residentialandcommercialrealestatemarkets;toexpandhomeownershipandextendaccesstoaffordable
housingtoallAmericans.
MBApromotesfairandethicallendingpracticesandfostersprofessionalexcellence
amongrealestatefinanceemployeesthroughawiderangeofeducationalprogramsandavarietyofpublications.
Itsmembership
of
over
2,200
companies
includes
all
elements
of
real
estate
finance:
mortgage
companies,
mortgagebrokers,commercialbanks,thrifts,WallStreetconduits,lifeinsurancecompaniesandothersinthe
mortgagelendingfield.Foradditionalinformation,visitMBAsWebsite:
www.mortgagebankers.org.
5
SIFMAbringstogetherthesharedinterestsofhundredsofsecuritiesfirms,banksandassetmanagers.
SIFMAs
missionistosupportastrongfinancialindustry,investoropportunity,capitalformation,jobcreationand
economicgrowth,whilebuildingtrustandconfidenceinthefinancialmarkets.
SIFMA,withofficesinNewYork
andWashington,D.C.,istheU.S.regionalmemberoftheGlobalFinancialMarketsAssociation.
Formore
information,visitwww.sifma.org.
