MBA Chart of the Week July 15 2022: Cost to Service Loans Per Employee

MBA’s annual Servicing Operations Study and Forum includes a deep-dive analysis and discussion of servicing costs, productivity, portfolio activity and operational metrics for in‐house servicers. This week’s MBA Chart of the Week shows 2021 fully loaded servicing costs, which include three components: direct expenses; unreimbursed foreclosure, REO and other default costs; and corporate administration costs.

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“A fear has been that LIHTC properties would simply jack up rents to the top of the market at the expiration of their rent and income restrictions, generally about 30 years, but that’s not usually the case. Any loss of units affordable to the lowest income renters is concerning, but there is some consolation in that LIHTC properties typically continue to serve low- and middle-income renters.”
–Steve Guggenmos, Vice President of Research & Modeling with Freddie Mac, McLean, Va.