Fannie Mae Discloses Results of Servicer Assessments

Fannie Mae has released the results of its new Servicer Total Achievement and Rewards (STAR) program for the first half of 2011.   STAR, which was inaugurated in February, lays out clear expectations for servicer performance in helping homeowners avoid foreclosure and provides consistent measurements of that performance.  Servicers who score well on STAR evaluations will be eligible for performance awards and recognition.

STAR ratings are based on a five STAR system with 3 STARS being the minimum satisfactory rating.  Three STARS indicates that a servicer has accomplished at least a median performance relative to its peers.  Four STARS signify that the servicer is on track to meet Fannie Mae targets and performing above median levels and 5 starts indicates superior performance and meeting of or exceeding Fannie Mae's targets.   Servicers that do not perform at a median level OR that do not receive satisfactory results on operational assessments do not receive a STAR rating.

The first ratings released are for servicers in Peer Groups One and Two, classifications that are based on the number of loans each company services.   Out of 11 servicers In Peer Group 1 GMAC Mortgage (Ally Bank), CitiMortgage Inc; Everhome Mortgage, and Wells Fargo Bank, N.A. are on track to achieve at least STAR-3 status for the year.  In Peer Group 2 which consists of 10 servicers those on track to receive a 3 star rating are Fifth Third Bank, the Huntington National Bank, HSBC Mortgage Corporation (USA), Aurora Financial Group Inc., Regions Bank, and Central Mortgage Company.  Information on Peer Group 3 and its 13 servicers will be released within the next 30 days.

"We are committed to helping stabilize the housing market by requiring servicers to prevent foreclosure whenever possible," said Leslie Peeler, Vice President for Servicer Portfolio Management, Fannie Mae. "The STAR program helps us evaluate and hold servicers accountable for measurable, consistent results in preventing foreclosure. Servicers who achieve the highest ratings are leading the way in providing assistance to homeowners who are having difficulty making their mortgage payments."