Generally, a Company Earns a Servicing Fee When It Retains

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

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free