Three mortgage servicers were recognized for their utilization of foreclosure alternatives during the third quarter and their ability to avoid foreclosures.
The servicers were JP Morgan Chase Bank, N.A., which has a total servicing portfolio of $925 billion; PHH Mortgage Corp., where the servicing portfolio stands at $178 billion; and U.S. Bank, N.A., which services $239 billion.
The three firms demonstrated improved performance based on the volume of foreclosure alternatives provided to borrowers, according to Fannie Mae’s third-quarter Servicer Total Achievement and Rewards program. Alternatives include loan modifications.
“This improvement resulted in all three servicers achieving at or above the median performance level for the third quarter measurement period,” Fannie stated.
Chase and PHH are both categorized as “peer group one” servicers, a group consisting of 11 firms that service the most loans for Fannie. In addition to the two servicers, CitiMortgage Inc., Everbank, GMAC Mortgage LLC and Wells Fargo Bank, N.A., are on track to be at or above median performance in order to achieve at least a three STAR rating for 2011
U.S. Bank is in peer group two, which consists of nine servicers. The other companies in this group that are on track for a three-STAR rating are Aurora Bank, FSB; Central Mortgage Co.; Fifth Third Bank; The Huntington National Bank; and Regions Bank.
Peer group three includes 13 mortgage servicers, nine of which are on track for the three-star rating or better.
Fannie Mae Vice President of Servicer Review and Measurement Tara Clayton explained in the announcement that the STAR program is helping to increase servicers’ focus on areas of critical importance to borrowers, Fannie and the market.
