The Federal Housing Administration is revising its scorecard for rating servicers on their loss mitigation efforts and the agency is seeking one last round of comments on the changes.
FHA has used its Tier Ranking System to measure servicers’ performance for many years.
“This revision, referred to as TRS II, will use more comprehensive performance metrics than the existing TRS to evaluate each mortgagee’s adherence to FHA’s Loss Mitigation program and default reporting requirements, as well as to ascertain the mortgagee’s compliance with FHA’s default servicing regulations,” FHA says in Mortgagee Letter 2013-21.
FHA issued the mortgagee letter on June 12 with a short 30-day comment period.
Earlier this year, the
But the trade group seems to be more comfortable with the TRS revisions now, according to MBA senior vice president Pete Mills.
“FHA’s ranking system is consistent with what they have been discussing for some time. The system takes a more holistic approach than previous efforts and appears to be useful in analyzing metrics, benchmarking and identifying areas for improvement,” Mills said.
“If we feel the need to comment or suggest alternative applications for this measurement tool, we will submit a letter,” he added.
