As the row continues with 50 nationwide government investigations into the lending service providers responsible for collecting bills for mortgage payments and other aspects of servicing mortgages for investors, it has brought to government attention just how badly managed these companies are. Fourteen companies were reviewed and all were found to be in violation of foreclosure laws. Fannie Mae and other government agencies are discussing how best to improve our mortgage servicing and lending here in the United States. Fannie Mae created a performance program to help mortgage officers get it right and stay within the bounds of the law. This will ultimately help ensure the health of our housing economy and help support the housing recovery.
Those working in the service will not only face any actions but also harsh fines as a collective entity. These fees can total more than 20 million; However, this is just an estimate of what they could charge for violating foreclosure laws.
Fannie Mae on Wednesday announced its STAR (Total Achievement and Service Rewards); The program is designed to provide better assistance and will help examine how domestics help homeowners avoid foreclosure. The goal of this new program is to establish clear expectations and specific metrics to help Fannie Mae and its employees focus more on avoiding foreclosure.
As more and more news comes out about how servants violate foreclosure laws, this program is an ongoing effort to hold servants accountable. How will this work? Each Service Provider will receive a Service Provider Scorecard, which in turn will provide feedback on a monthly basis. With this software, it should help service providers see where they need improvement and overall performance. The highest ranked server will become eligible to receive monthly incentive prizes and recognition. Also, the performance of the best employee will be announced in the annual scorecard. Many believe this program will help improve customer service better for homeowners, assist with home repossessions, and keep butlers on track.
This will also help the federal government set applicable guidelines and regulations for the mortgage servicing industry. With the mortgage industry and the banking industry being reviewed by the government to find a solution and to prevent further financial crises, it looks like many changes are going to happen over the next few months and years. While we wait and see if HAMP and other federal programs stick around, it’s good to know that servants will now be better regulated in hopes of making the homeowner’s ship experience safer for everyone.