Does Servicer Affect Prepayment Speeds of Fannie Mae Pools?
Does it matter who is servicing the pools you own?
There are literally thousands of different servicers of Fannie Mae and Freddie Mac pools. Does the servicer make any material difference in the prepayment speed? In this analysis, we will examine the prepayment rates for 2014 vintage Fannie Mae 30-year 3.5% pools serviced by Bank of America, JPMorgan Chase, Citi, Quicken Loans, and Wells Fargo in order to gauge whether there are any material variances. These five servicers are just a small subset of the more than 600 servicers that RiskSpan has mapped and normalized.
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