Which of the following is true about a servicing fee in a MPT security? A. This

ID: 2821650 • Letter: W

Question

Which of the following is true about a servicing fee in a MPT security?

A. This fee provides compensation to the servicer for originating mortgages in the pool

B. This is a one-time fee at the time of pool securitization and is based on the starting balance of the pool

C. Revenue generated from the servicing fee increases over the pool's lifecycle

D. All of the above

E. None of the above

A. This fee provides compensation to the servicer for originating mortgages in the pool

B. This is a one-time fee at the time of pool securitization and is based on the starting balance of the pool

C. Revenue generated from the servicing fee increases over the pool's lifecycle

D. All of the above

E. None of the above

Answer ( B) This is one time fee at the time of pool securitization and is based on the starting balance of the pool.

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