•Base Servicing Fee - 25 basis points of the outstanding loan balance annually.

•Float Income - interest earned on escrow balances (taxes and insurance), as well as borrower monthly payments   and curtailments held prior to disbursement.

•Ancillary Income - late fees, investor incentives, modification fees and other fees charged to borrowers.

•Economics from Prepayment Behavior - lower the prepayment, the longer loan life → more servicing revenue.

•Effective and efficient sub-servicers - negotiated sub-servicing terms to promote favorable returns.

•Revenue share - with the sub-servicer for recapturing paid in full loans and home equity products.

•This creates a bond-like investment, producing attractive returns and cash flow.