Fannie Mae Announces Servicer Ratings for Foreclosure Prevention

Government sponsored enterprise Fannie Mae recently announced additional results from its Servicer Total Achievement and Rewards Program (STAR).

Fannie’s initiative, which helps evaluate servicers seeking to assist homeowners in preventing foreclosure, released more rankings from the second-quarter, highlighting those servicers that achieved at least a 3 STAR measurement for the period.

Targeting consistency in customer service and foreclosure avoidance when dealing with borrowers, STAR examines servicers overall performance and rates them on a 5 STAR scale.

The latest reports from Fannie Mae looked at the so-called Peer Group Three. Servicers are categorized into three peer groups based on the number of Fannie Mae loans they service. Group Three includes those with smaller servicing volumes.

In total, 11 out of 13 servicers in Peer Group Three were named as being on track to receive a 3 STAR or better evaluation for 2011.

They include: American Home Mortgage Servicing, Arvest Mortgage Company, Associated Bank, Branch Banking and Trust Co. (BB&T), Capital One, Colonial Savings, Doral Bank, Nationwide Advantage Mortgage, Navy Federal Credit Union, Manufacturers and Traders Trust Co., and Sovereign Bank.

Those in Peer Group Three receiving a 3 STAR ranking demonstrated median or better success in servicing distressed borrowers, as compared to their peers. They join financial institutions categorized among two additional peer groupings, and evaluated earlier in the year.

Fannie’s September survey data noted the companies from Peer Group One and Peer Group Two that are deemed as performing at an above average standard and are producing better results than their peers.

GMAC Mortgage (Ally Bank), CitiMortgage, Everhome Mortgage, and Wells Fargo from Peer Group One will likely end 2011 with a minimum 3 STAR rating.

Within Peer Group Two, Fannie named Fifth Third Bank, the Huntington National Bank, HSBC Mortgage, Aurora Bank, Regions Bank, and Central Mortgage Company as receiving at least a 3 STAR rating.

Fannie Mae’s VP of servicer portfolio management, Leslie Peeler, said of the findings, “Fannie Mae’s mission is to help stabilize the housing market. By working with servicers to prevent foreclosure whenever possible, we can help bring about stability and recovery to America’s neighborhoods. Servicers who achieve the highest rankings in the STAR Program are the market leaders in providing assistance to homeowners who are having difficulty making their mortgage payments.”

Peer groupings are subject to a 10-point examination of key performance indicators, and Fannie’s STAR program provides monthly snapshots of each company’s servicing activities.

Fannie is simultaneously conducting operational business process assessments, which impact STAR rankings. Servicers coming in below a median level according to the STAR scale do not gain any type of rating.

This post is DSNews.com’s article: Fannie Mae Announces Servicer Ratings for Foreclosure Prevention.

Renee West

I'm a real estate broker associate in Newport Beach & Corona del Mar, CA, with Berkshire Hathaway HomeServices California Properties.
If you have any questions about the real estate market, or are interested in listing or buying, please don't hesitate to contact me at (714) 914-9060 or Renee@bhhscdm.com!

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