STAR Servicer – Total Achievement and Rewards Program for Mortgage Servicers

As the fallout continues with investigations of all 50 states across the country, loan servicers who are responsible for collecting invoices for mortgage payments and other aspects of mortgage servicing for investors, the government It has drawn attention to how poorly these companies are run. Fourteen companies have been under review and all of them have been found to be in violation of foreclosure laws. Fannie Mae and other government agencies have been discussing how best to improve our mortgage lending and servicing here in the United States. Fannie Mae has devised a performance program to help mortgage servicers get it right and stay within the limits of the law. Ultimately, this will help ensure the health of our housing economy and help support the housing recovery.

The administrators will not only face no proceedings, but will also face stiff fines as a group entity. These fees could add up to more than 20 million; however, this is only an estimate of what they could be paying for violating foreclosure laws.

Fannie Mae announced Wednesday STAR (Total Manager Achievement and Rewards); The program is designed to better assist and will help examine how servicers help homeowners avoid foreclosure. The goal of this new program is to establish clear expectations and specific actions to help Fannie Mae and servicers increase focus on avoiding foreclosure.

As more and more news emerges about how servicers have violated foreclosure laws, this program is an ongoing effort to hold servicers accountable. So how will this work? Each manager will receive a manager performance scorecard, which in turn will provide feedback on a monthly basis. With this program, it should help administrators see where they need to improve and overall performance. High-ranking administrators will be eligible to receive monthly incentives and recognition. In addition, the performance of the most senior managers will be made public in an annual scorecard. Many believe this program will help provide better customer service to homeowners, help with home recovery, and keep managers on track.

This will also help the federal government establish guidelines and regulations for the mortgage servicing industry. As the government reviews the mortgage and banking industry to find a solution and prevent another financial crisis, it looks like a lot of changes are going to happen in the coming months and years. As we wait and see if HAMP and other federal programs will continue, it’s good to know that administrators will now be better regulated in hopes of making the homeownership experience safer for everyone.