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A year ago mortgage servicers – especially small- to medium-sized shops – breathed a collective sigh of relief after the Federal Housing Finance Agency shelved a proposal to radically alter servicing compensation for Fannie Mae and Freddie Mac mortgages. The agency had toyed with the idea of replacing the 25 basis point minimum fee with a flat “fee for service” payment, perhaps as low as $10 per month for performing loans. But there are new concerns that the “fee for service” (FFS) model could be revisited if and when the agency gets a new permanent director. Executives at servicing advisory and investment banking firms say...