Nearly half of Fannie Mae's eligible servicers are on track to receive at least a three STAR rating for 2011. Fannie Mae announced third quarter results for STAR, the Servicers Total Achievement and Rewards Program, which was established by Fannie Mae in February as a component of its overall efforts to prevent foreclosures and stabilize neighborhoods.
Sixteen of 33 servicers completed the third quarter in a position to be at the median or above on STAR standards which Fannie Mae says lay out clear expectations for servicer performance and provide consistent measurements of that performance. The Servicer Performance Scorecard, a key component of STAR, provides monthly performance snapshots and trends for key performance indicators to help servicers effectively assess their progress. Servicers who score well on the evaluations will be eligible for performance awards and recognition and rankings of top performers will be available to the public by way of an annual scorecard.
The servicers are categorized into three peer groups based on the number of Fannie Mae loans they service. As of the end of the third quarter, the following servicers by category are on track to be at or above median performance for the entire year.
In Peer Group One which consists 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, and Regions Bank.
Peer Group Three with13 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
In addition, two Peer Group One servicers, JP Morgan Chase Bank, N.A. and PHH Mortgage Corporation pulled up their performance to a level at or above the median performance level for the third quarter as did U.S. Bank N.A., a Peer Group Two servicer.
Fannie Mae will publish final 2011 STAR rating results in early 2012. The overall STAR rating will be dependent upon outcomes from the operational assessments as well as the servicer's results on the Servicer Performance Scorecard.