Fannie Mae started rating its servicers two years ago and not one has reached the level of performance to be considered a five-star servicer.
“We have a very high bar for achieving five-star performance. And none of the servicers have achieved that level yet,” said Leslie Peeler, senior vice president of Fannie’s National Servicing Organization.
On Tuesday, Fannie announced that five servicers reached the level of a four-star servicer in 2012. They are Fifth Third Bank, Associated Bank NA, Green Tree Servicing LLC, Navy Federal Credit Union and Seterus Inc. (In 2011, the
The five servicers reached the higher designation due to improvements in internal processing that allows them to provide more consistent servicing results.
Fannie looks at two main measures of performance in rating its servicers under the Servicer Total Achievement and Rewards (STAR) program.
First is a performance scorecard that measures outcome and results in terms of roll rates, loss mitigation delivery and workout effectiveness.
Second is an operation assessment that measures the servicer’s consistency in the delivering consumer service, loss mitigation and default management based on the company’s internal processes.
In 2012, Peeler’s unit noticed improvements in how predictable and reliable the servicers’ processes had become which lead to the four-star ratings.
“Servicers are continuing to improve their processes and achieve better results in foreclosure prevention and customer service,” Peeler said.
In 2011, many servicers received a high rating based on their performance scorecard but not on their operational assessments.
