Year End STAR Achievers Announced by Fannie Mae; PHH Shines

by devteam March 16th, 2012 | Share

The servicers scoring STAR rewards forrnthe second half of 2011 were announced today by Fannie Mae.   STAR, the Servicer Total Achievement andrnRewards Program was established in early 2011 tornestablish standards and recognize excellence among Fannie Mae servicers inrntheir overall performance, customer service, and foreclosure preventionrnefforts.  </p

STAR uses two methods for evaluatingrnparticipating servicers, operational assessment and PerformancernScorecards.  Fannie Mae will publishrnoverall 2011 STAR Program annual results incorporating both elements nextrnmonth.  </p

When STAR was first rolled out we interviewed Leslie Peeler, the person who was heading the program at thatrntime.  She explained that the scorecard covers four performance categories: </p<ul type="disc"

  • Roll rates.rn Measures loans progress through the various stages of delinquency. </li
  • Solution delivery.rn The number of borrowers assisted, the number who are able to retain theirrn homes, and the number of loans liquidated through foreclosure alternativesrn as a ratio of the universe needing help. </li
  • Workout effectiveness.rn Numbers of modified loans still performing at designated milestones. Wasrn the right solution prescribed and was follow-through appropriate?</li
  • Time line management.rn Were actions performed efficiently? Was intervention timely? Wasrn resolution timely?  </li</ul

    For 2011, the following servicersrnhave produced results on the STAR Performance Scorecard at or above medianrnlevels relative to peers.  Those appearingrnfor the first time are in bold. </p<ul type="disc"

  • Peer Group One (consisting of 11 servicers) -rn CitiMortgage, Inc., EverBank, GMAC Mortgage, LLC (Ally Bank), JP Morganrn Chase, and Wells Fargo Bank, NA</li
  • Peer Group Two (consisting of 9 servicers) – Aurorarn Bank, FSB, Central Mortgage Company, Fifth Third Bank, HSBC Mortgagern Corporation, The Huntington National Bank, and Regions Bank</li
  • Peer Group Three (consisting of 13 servicers) -rn American Home Mortgage Servicing, Inc., Arvest Mortgage Company,rn Associated Bank, NA, Capital One, N.A., Colonial Savings, F.A., Doralrn Bank, M&T Bank, Nationwide Advantage Mortgage Co., Navy Federal Creditrn Union, Third Federal Savings and Loan,  Branch Banking & Trust,rn and Sovereign Bank, FSB</li</ul

    Several banks that appeared on thernlist during the first half of the year did not appear on the current list.  The Fannie Mae press release also noted that,rn”For the second half of 2011, PHH Mortgage Corporation demonstrated significantrnperformance improvements and achieved at or above median levels compared tornpeers.”</p

    Thirty-three servicers nowrnparticipate in the STAR program but additional servicers will be added thisrnyear.  Fannie Mae said that, as a result,rnthe peer groupings will change. </p

     “Servicers in the STAR Program are changingrntheir approach to managing Fannie Mae loans, assisting homeowners, andrnmeasuring success,” said Tara Malone, Vice President of Servicer Review andrnMeasurement, Fannie Mae. “We’re pleased to report significant improvements inrnperformance for some of our servicers over the course of 2011. Servicers havernincreased their focus on areas of key importance for helping Fannie Mae managernlosses and prevent foreclosures, which should drive improved STAR performancernin 2012.”

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  • About the Author


    Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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