Generally, a Company Earns a Servicing Fee When It Retains

question 107

Multiple Choice

Generally, a company earns a servicing fee when it retains the servicing of a block of loans in which it has sold all or part of the block. Service fees received from sales of participations are recorded as:

• A) Gross income and not netted against interest income remitted to the acquiring party
• B) Unearned revenue and not netted against interest income remitted to the acquiring party
• C) Gross income
• D) Netted against interest income remitted to the acquiring party

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Definitions:

Interpersonal Skill

The ability to communicate or interact well with other people, often demonstrating empathy, negotiation, and conflict-resolution abilities.

Formal Education

Structured learning that takes place within an academic institution, leading to certification or a degree.

Personality Traits

Enduring characteristics that describe an individual's behavior, attitude, and emotions, which are consistent across various situations.

Skills

The expertise or ability acquired through practice, training, or experience to perform a task effectively.