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Mortgage News Daily combines the expertise of some of the housing industry's leading minds with the power of social media to offer an always lively, constantly evolving web community. MND communicates breaking news, streams video, and provides expert opinion and commentary to a community of interested market professionals and curious consumers.STAR Scorecard: Loan Servicer Performance Metrics Explained
Last
week Fannie Mae announced the Servicer Total Achievement and Rewards Program or
"STAR" which is intended to measure and evaluate the performance of servicer
actions in helping homeowners avoid foreclosure. STAR's initial component, the Servicer
Performance Scorecard, will provide regular snapshots and trends for key
performance indicators to help servicers effectively assess their own progress. This week MND had the opportunity to obtain
more details from Leslie Peeler who heads up the program.
Peeler
said that the scorecard measures how well servicers are fulfilling their
obligation to help distressed borrowers but places no further reporting burden
on the servicers. Fannie Mae is
currently in the process of using the scorecard and 2010 data to show servicers
how well they met performance goals in this area over the past year. Going
forward, the scorecard information will be transmitted to servicers on a monthly
basis.
The
scorecard covers four performance categories:
-
Roll
rates. Measures loans progress through
the various stages of delinquency.
-
Solution
delivery. The number of borrowers assisted,
the number of borrowers who are able to retain their homes, and the number of
loans liquidated (via deed-in-lieu or pre-foreclosure sale but not through
foreclosure), as a ratio of the universe needing help.
-
Workout
effectiveness. How many loans that were
modified are still performing in three, six, and 12 months? Was the right solution prescribed and was
follow-through appropriate?
-
Time
line management. Were actions performed
efficiently? How long did it take to initiate
a foreclosure or retention action? How
long did a loan remain in seriously delinquent status?
Loans
are matched against a like set of loans so that reasonable comparisons of
servicer performance can be made.
Peeler
said that details are still being worked out as to how top servicers will be recognized
and appropriate incentives and rewards. "The
program is designed to identify, recognize and reward top performers," she
said. "However it will also
identify those servicers not meeting expectations. Consistent with current
practices, penalties are to be handled outside of the STAR Program."
A second aspect of STAR will be announced
shortly. This will be a servicer capability model which will provide metrics to
measure servicers' internal processes.
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This email was sent to you by:
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Mortgage News Daily
|
 |
Anonymous Anonymous |
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Message:
YOUR MESSAGE HERE
STAR Scorecard: Loan Servicer Performance Metrics Explained
Last
week Fannie Mae announced the Servicer Total Achievement and Rewards Program or
"STAR" which is intended to measure and evaluate the performance of servicer
actions in helping homeowners avoid foreclosure. STAR's initial component, the Servicer
Performance Scorecard, will provide regular snapshots and trends for key
performance indicators to help servicers effectively assess their own progress. This week MND had the opportunity to obtain
more details from Leslie Peeler who heads up the program.
Peeler
said that the scorecard measures how well servicers are fulfilling their
obligation to help distressed borrowers but places no further reporting burden
on the servicers. Fannie Mae is
currently in the process of using the scorecard and 2010 data to show servicers
how well they met performance goals in this area over the past year. Going
forward, the scorecard information will be transmitted to servicers on a monthly
basis.
The
scorecard covers four performance categories:
-
Roll
rates. Measures loans progress through
the various stages of delinquency.
-
Solution
delivery. The number of borrowers assisted,
the number of borrowers who are able to retain their homes, and the number of
loans liquidated (via deed-in-lieu or pre-foreclosure sale but not through
foreclosure), as a ratio of the universe needing help.
-
Workout
effectiveness. How many loans that were
modified are still performing in three, six, and 12 months? Was the right solution prescribed and was
follow-through appropriate?
-
Time
line management. Were actions performed
efficiently? How long did it take to initiate
a foreclosure or retention action? How
long did a loan remain in seriously delinquent status?
Loans
are matched against a like set of loans so that reasonable comparisons of
servicer performance can be made.
Peeler
said that details are still being worked out as to how top servicers will be recognized
and appropriate incentives and rewards. "The
program is designed to identify, recognize and reward top performers," she
said. "However it will also
identify those servicers not meeting expectations. Consistent with current
practices, penalties are to be handled outside of the STAR Program."
A second aspect of STAR will be announced
shortly. This will be a servicer capability model which will provide metrics to
measure servicers' internal processes.
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