Fannie Mae has announced the results of its Servicer Total Achievement and Rewards (STAR) Program through the third quarter of 2011, measuring the performance of servicers with an emphasis on foreclosure prevention. Encouraging servicer improvements through the STAR Program is an important component of Fannie Mae’s overall efforts to prevent foreclosures and stabilize neighborhoods.
“The STAR program evaluates servicers’ capabilities and results and holds them accountable for preventing foreclosures and protecting the interests of American taxpayers,” said Tara Clayton, vice president of Servicer Review and Measurement for Fannie Mae. “STAR is making a difference when it comes to increasing servicers’ focus on areas of critical importance to homeowners, Fannie Mae, and the market.”
Servicers are categorized into three peer groups based on the number of Fannie Mae loans they service and measured based on performance metrics and results from operational assessments across key business processes. As of the end of the third quarter, the following servicers are on track to be at or above median performance in order to achieve at least a three STAR rating for 2011:
►Peer Group One (consisting of 11 servicers): CitiMortgage Inc., Everbank, GMAC Mortgage LLC (Ally Bank) and Wells Fargo
►Peer Group Two (consisting of nine servicers): Aurora Bank FSB, Central Mortgage Company, Fifth Third Bank, The Huntington National Bank, Regions Bank
►Peer Group Three (consisting of 13 servicers): American Home Mortgage Servicing Inc., Arvest Mortgage Company, Associated Bank, NA, Capital One, Colonial Savings, Doral Bank, Manufacturers and Traders Trust, Nationwide Advantage Mortgage Company, Navy Federal Credit Union
During the third quarter of 2011, Chase and PHH Mortgage Corporation, both Peer Group One servicers, and U.S. Bank, a Peer Group Two servicer, demonstrated improvements in STAR Scorecard metrics measuring the volume of foreclosure alternatives provided to homeowners, such as loan modifications. This improvement resulted in all three servicers achieving at or above the median performance level for the third quarter measurement period.
Fannie Mae will publish final 2011 STAR rating results in early 2012. The overall STAR rating will be dependent upon outcomes from the operational assessments as well as the servicer’s results on the Servicer Performance Scorecard.