Fannie Mae (FNMA/OTC) recently announced Servicer Total Achievement and Rewards (STAR) Program results for the first half of 2011, measuring the performance of servicers in helping homeowners avoid foreclosure.
The STAR Program, announced in February 2011, provides clear expectations and specific, consistent measurements to help Fannie Mae servicers increase their focus on areas of critical importance to Fannie Mae. The program is designed to encourage improvements in customer service and foreclosure prevention outcomes for homeowners by rating servicers on their performance in these areas.
“We are committed to helping stabilize the housing market by requiring servicers to prevent foreclosure whenever possible,” says Leslie Peeler, Vice President for Servicer Portfolio Management, Fannie Mae. “The STAR program helps us evaluate and hold servicers accountable for measurable, consistent results in preventing foreclosure. Servicers who achieve the highest ratings are leading the way in providing assistance to homeowners who are having difficulty making their mortgage payments.”
STAR ratings are based on a 5 STAR scale. Servicers have achieved an overall satisfactory rating on operational assessments by achieving a 3 STAR rating or above:
• 3 STARs indicates that a servicer has accomplished at least median performance relative to peers.
• 4 STARs signifies the servicer is on track to meet Fannie Mae targets and is performing above median performance.
• 5 STARs represents superior performance wherein the servicer is meeting or exceeding Fannie Mae’s targets.
Servicers are categorized into three peer groups based on the number of Fannie Mae loans they service. Each servicer is scored within their peer group using the Servicer Performance Scorecard, which provides monthly performance snapshots and trends for ten key performance indicators. Those indicators are heavily weighted toward measuring the servicer’s impact on helping distressed homeowners by delivering sustainable solutions.
Under the STAR Program, Fannie Mae is also conducting operational assessments across key business processes performed by the servicer. The outcomes from the operational assessments conducted thus far and the servicer’s results on the Servicer Performance Scorecard will drive the overall annual STAR rating.
Under the program, servicers that do not perform at a median level OR that do not receive satisfactory results on operational assessments do not receive a STAR rating.
For more information, visit www.fanniemae.com.
