26 Servicers Rank as 'Tier One'
Twenty-six mortgage servicers have achieved Tier One recognition from Freddie Mac for both superior investor reporting and default management during two or more quarters of last year.
Freddie Mac also inducted eight servicers into its Tier One Hall of Fame for achieving Tier One status for four consecutive years.
Freddie Mac ranks its servicers each month on the basis of several performance benchmarks that cover a wide range of activities, such as investor reporting and minimizing credit losses by helping delinquent borrowers overcome short-term financial difficulties and avoid foreclosure.
The ranking system consists of four tiers, with Tier One indicating "superior performance" and Tier Four indicating "unacceptable results."
Servicers that achieve Tier One rating for at least two quarters in a year receive a number of benefits, including fee waivers, financial rewards and national recognition.
The Hall of Fame recipients are Alliance Mortgage Co., Bank of America Mortgage, Chevy Chase Bank, Countrywide Home Loans, First Horizon Home Loan, HSBC Mortgage Corp., National City Mortgage and Wells Fargo Home Mortgage.
The Tier One recipients are Alliance Mortgage, AMCORE Mortgage, Bank of America Mortgage, Cendant Mortgage, Chase Home Finance, Chevy Chase Bank, Colonial Savings, Commercial Federal Bank, Countrywide Home Loans, Doral Mortgage Corp., Fifth Third Bank, First Horizon Home Loan Corp., Guaranty Residential Lending, HSBC Mortgage Corp., IndyMac Bank, M&T Mortgage, Matrix Financial Services, National City Mortgage, Principal Residential Mortgage, Regions Mortgage, Sovereign Bank, SunTrust Mortgage, U.S. Bank Home Mortgage, Ulster Savings Bank, Washington Mutual Bank and Wells Fargo Home Mortgage. In 2003, the Hall of Fame recipients serviced 38% of the 10 million loans owned by Freddie Mac, while the Tier One recipients serviced another 26%.
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