Posted on Monday, April 4, 2011
Timothy Massad, acting assistant Treasury secretary, said this week that beginning next month Treasury will start publishing a scorecard grading the largest servicers based on their compliance with the Home Affordable Modification Program (HAMP).
Though members of the House voted yesterday to end the program, the Treasury is moving forward with its plans to grade servicers, basing the first report on servicer performance in 2010.
The scorecards will be an added element to the monthly servicer performance reports that the agency already
publishes, as part of what Massad says is Treasury’s commitment to compliance.
The report is “one of the only sources of servicer specific information on loan modifications and homeowner experience,” Massad said.
He continued, “Throughout 2010, Treasury expanded reporting to include results of compliance reviews, metrics on homeowner experience, performance of HAMP modifications over time, survey data on homeowners who did not receive permanent modifications, and, most recently, a data file with loan level details on homeowners.”
Now, the scorecard will grade compliance on a number of elements including proper evaluation of homeowners for modifications, program implementation, and quality control. The companies will be graded as well as rated against other servicers.
Massad said that since HAMP is a voluntary program, the Treasury cannot regulate or fine the servicers, though they can require servicers to fix problems based on contractual obligations. The agency will continue to require adherence to contractual compliance issues, and will also “begin withholding financial incentives for servicers receiving an unsatisfactory grade.”
By: Joy Leopold DS NEWS