Encouraging Mortgage Servicers to Perform Better
3 Ranking and Reward Programs Aim To Help Servicers
This year has seen an industry-wide effort to overhaul the performance of mortgage servicers. Three of the biggest names in the industry, Freddie Mac, Fannie Mae and PMI Mortgage Insurance Co., have implemented programs to quantify, rank and reward servicers according to varying criteria.
- Last week, Freddie Mac announced its new Freddie Mac Servicing Success Program, which combines scores with reviews to, as the Servicing Success Program page puts it, “transform how [Freddie Mac] defines, measures, and recognizes servicing excellence.”
- In June, PMI Mortgage Insurance Co. announced its new MODEL program to “recognize best-in-class servicers for the work they're doing to prevent foreclosures," according to Chris Hovery, PMI senior vice president of servicing operations and loss mitigation.
- In February of this year, Fannie Mae launched its STAR (Servicer Total Achievement and Rewards) program “to measure and evaluate mortgage servicers' performance in supporting the housing recovery by helping homeowners avoid foreclosure.”
The intent of all these programs was nicely summed up in Tracy Moony, SVP of single-family servicing and REO at Freddie Mac, when she noted Freddie Mac’s commitment “to invest in the future of U.S. homeownership by strengthening servicing practices and enabling servicers to more effectively preserve homeownership.”