Freddie Mac Examines PL Servicer Rankings

Written by John Clapp
on February 25, 2010 No Comments
Categories : From The Orb

Freddie Mac is looking to modify its tier ranking system for servicers of performing loans.

In a presentation at the Mortgage Bankers Association's National Mortgage Servicing Conference & Expo in San Diego, Chip Pearson, vice president of Freddie Mac's loan and securities operations, stated that tier profiles for performing-loan servicers will take a different form starting next year. In 2009, the government-sponsored enterprise altered the weighting of the criteria underlying its nonperforming-loan rankings but left the performing-loan rankings format largely intact.

‘What we're looking at this year is to actually revamp some of the tier rankings of performing-loan servicers to make it more meaningful to both you, as a servicer, and to Freddie Mac,’ says Pearson, adding that approximately 85% of Freddie Mac's servicers fall into the Tier 1 category, the highest ranking. ‘There is not enough definition between the top performers, from a servicing perspective, and the lowest performers, from a servicing perspective.’

Pearson says the new tier ranking system could take effect beginning in 2011.

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