An escalation in prepayment volume pushed up quarterly losses from mortgage servicing rights activity and drove earnings at the mortgage servicers deeper into the red.
Residential loan servicers lost an average of over 8 basis points on each loan that they serviced during the period that started on April 1, 2016, and concluded on June 30.
Average earnings deteriorated compared to the first quarter, when losses amounted to less than 6 BPS, and swung from an 11-basis-point profit in the second-quarter 2015.
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From:: Financing