Fannie Mae this week reported “significant improvements” in the performance of several of its largest seller/servicers, even though only half received satisfactory reviews.
CitiMortgage, Inc., GMAC Mortgage, LLC (Ally Bank), Wells Fargo Bank, NA, EverBank, and JPMorgan Chase, are among the banks that improved their performance according to Fannie's 'Servicer Total Achievement and Rewards' program, which measures results for 2011.
JPMorgan Chase is the only new addition to the list of the GSE's [Peer Group One' banks that received the same rating in 2011. In its previous report Fannie noted these servicing banks were “on track to achieve at least a 3 STAR rating for 2011” in a 5 STAR scale, but are apparently still far from achieving excellence in servicing performance.
During 2011, many of the rated servicers increased their focus on loss management and foreclosure prevention.
Currently, Fannie rates a total of 34 servicers, which are segmented into three peer groups based on the number of mortgages they service.
Servicers that perform under the median level -- or do not receive satisfactory results on operational assessments -- do not receive a STAR rating. Given that only six of the 11 servicers of Fannie Mae loans were rated means half of the GSE's largest servicers do not qualify for satisfactory reviews.
The 3 STAR rating indicates a servicer has accomplished “at least median performance” relative to peers. Four STARs signify a servicer is performing above the median level and “on track to meet” Fannie targets. Five STARs represent superior performance.
From Peer Group Two, which consists of 9 servicers, the following 7 made the grade: Aurora Bank, FSB, Central Mortgage Company, Fifth Third Bank, HSBC Mortgage Corporation, The Huntington National Bank, and Regions Bank.
Meanwhile the 13 Peer Group Three servicers rated received a satisfactory rate. The group includes American Home Mortgage Servicing, Inc., Arvest Mortgage Company, Associated Bank, NA, Capital One, N.A., Colonial Savings, F.A., Doral Bank, M&T Bank, Nationwide Advantage Mortgage Co., Navy Federal Credit Union, Third Federal Savings and Loan, Branch Banking & Trust, and Sovereign Bank.
During the second half of 2011, PHH Mortgage Corporation also demonstrated significant performance improvements and achieved at or above median levels compared to peers, Fannie said.
