For lenders facing the question of whether to retain or release servicing, Fannie Mae wants you to know it has customer account teams waiting for your call.
According to a blog authored by Stephen Pawlowski, Fannie's vice president for business initiative management, advice provided by the account teams can help lenders assess their own strategic objectives, consider the use of a subservicer, model operating results and cashflows under various scenarios, and evaluate pro forma earnings.
In the blog, Pawlowski also touches on the upsides and downsides of a retained servicing execution. Potential benefits include maintaining the customer relationship, potential franchise value for the company and servicing cashflow. As downsides, he lists the capital requirements and servicing advances, as well as investments in a subservicing relationship or implementation of servicing technology.
Additionally, lenders must consider the accounting and compliance responsibilities tied to retained servicing.
"Whether servicing can be advantageously sold depends on liquidity in the market," Pawlowski writes. "Beyond that, the decision on whether or not a mortgage lender should retain or sell servicing will depend on the business plan of the mortgage lender and other factors such as personnel, liquidity and capital.’