Housing scorecard finds servicers performance improving overall
The latest servicer assessments – part of the Obama administration’s housing scorecard – summarize performance on three categories of program implementation: identifying and contacting homeowners; homeowner evaluation and assistance; and program reporting, management and governance.
For the third quarter of 2011, only JPMorgan Chase, NA was found to be in need of substantial improvement under the program. While JPMorgan Chase demonstrated some progress in areas reported for the third quarter, the servicer has a number of outstanding items from previous quarters that have not yet been addressed and play a critical part in their broader execution of the program. For these reasons, Treasury will withhold servicer incentives from JPMorgan Chase for the third consecutive quarter and will permanently reduce incentives owed to JPMorgan Chase unless the outstanding items are addressed before the next assessment.
Bank of America, NA was found to be in need of moderate improvement for the third quarter of 2011, but will continue to have its servicer incentives for previous quarters withheld. Although Bank of America has not yet remediated all of the areas previously identified as requiring substantial improvement from the previous quarter, it has made progress in addressing a number of items.
The assessments indicate that servicers have been focusing attention on areas identified through regular compliance and program reviews. For example, the error rate with respect to servicers’ calculations of homeowner income has declined from an average of 17.5 percent as of the first quarter of 2011 to 3.8 percent as of the third quarter (income calculation is used to determine eligibility and payment amount for the Home Affordable Modification Program (HAMP)).