More Banks were STARs in the Third Quarter

by Chicago Agent

Several banks received higher ratings in Fannie Mae's STAR program for their assistance to homeowners.

Earlier today, Fannie Mae released its Servicer Total Achievement and Rewards (STAR) Program results for the third quarter of 2011, which measures the performance of servicers with an emphasis on foreclosure prevention.

According to a press release on the program, Fannie ultimately hopes to prevent foreclosures and stabilize neighborhoods by using the STAR ratings to encourage servicer improvements.

Tara Clayton, the vice president of servicer review and measurement for Fannie, offered further perspective on the intention of STAR.

“The STAR program evaluates servicers’ capabilities and results and holds them accountable for preventing foreclosures and protecting the interests of American taxpayers,” Clayton said.  “STAR is making a difference when it comes to increasing servicers’ focus on areas of critical importance to homeowners, Fannie Mae, and the market.”

Servicers are categorized into three peer groups based on the number of Fannie Mae loans they service, and they are then measured based on a set of performance metrics. According to a breakout provided by Fannie, the following servicers are on track to be at or above median performance in order to achieve at least a three STAR rating for 2011:

  • Peer Group One (consisting of 11 servicers) – CitiMortgage, Inc., Everbank, GMAC Mortgage, LLC (Ally Bank), Wells Fargo, N.A.
  • Peer Group Two (consisting of 9 servicers)- Aurora Bank, FSB, Central Mortgage Company, Fifth Third Bank, The Huntington National Bank, Regions Bank
  • Peer Group Three (consisting of 13 servicers) – American Home Mortgage Servicing, Inc., Arvest Mortgage Company, Associated Bank, NA, Capital One, N.A,, Colonial Savings, F.A., Doral Bank, Manufacturers and Traders Trust, Co., Nationwide Advantage Mortgage Co., Navy Federal Credit Union
Several lenders showed improvements in the third quarter. JP Morgan Chase Bank, N.A. and PHH Mortgage Corporation, both Peer Group One servicers, and U.S. Bank N.A., a Peer Group Two servicer, improved its metrics scoring by better offering foreclosure alternatives to homeowners, such as modifications. That improvement, Fannie stated, gave the lenders a scoring at or above the median performance level for the quarter.

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