Exit SOFE-AFE Accredited Financial Examiner
Question 2 of 5
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Q2 Single 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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