In last week’s Chart of the Week, we focused on the major cost components of originating a loan in 2025. Today’s Chart focuses on the major cost components of servicing a loan based on data from the annual Servicing Operations Study and Forum (SOSF), MBA’s most detailed and comprehensive servicing benchmarking study representing almost 60 percent of the residential servicing market.
In total, annual direct servicing costs averaged $185 per loan in 2025, an increase from $181 per loan in 2024. About 75 percent of the costs ($136 per loan) are related to non-default specific costs such as customer service, escrow and loss draft processing, servicing set-ups, payoffs and transfers, and executive management. The remainder of the direct servicing costs ($49 per loan) are related to default-specific costs such as collections, loss mitigation, bankruptcy, and foreclosure.
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