Fannie Mae on Wednesday unveiled a new incentive program to compensate its seller/servicers that help struggling mortgagors avoid foreclosure.
It also will be grading these servicers by using a monthly scorecard that gives marks for servicing performance curing troubled loans.
Unveiled at a trade show, the GSE called its 'Servicer Total Achievement and Rewards (STAR) Program' a new effort "designed to measure and evaluate mortgage servicers' performance in supporting the housing recovery by helping homeowners."
It is no secret in the industry that Fannie has been none-too-pleased with how some of its servicers handle delinquent mortgages. Several mortgage companies have had servicing rights yanked away from them by the GSE and placed with specialty servicers such as Nationstar and IBM Lender Business Process Services, the servicing arm of computer giant IBM.
"The STAR Program provides clear expectations and specific, consistent measurements to help Fannie Mae servicers increase focus on areas of critical importance to Fannie Mae," the GSE said. "The program directly links servicer performance to homeowners the servicer has helped, and the customer’s experience with their servicer."
