Responsible Servicing behavior metrics and scores: Loan churn

Responsible behavior in a servicing context is the practice of extending fair and reasonable terms to borrowers throughout the life of the loan in the regular servicing processes; to facilitate the measurement of and highlight the extent of potentially predatory practices within a deal or market segment, quantitative- based metrics have been developed.

Loans issued and then passed to the three different Government Sponsored Enterprises (GSEs) (GNMA, FNMA, and FHLMC) have been considered as separate universes, due to the different eligibility requirements. In this research, we focus on loans originated after the Great Financial Crisis (GFC) within the Ginnie Mae universe.

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Supporting documents

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