STAR 2017 MBA Presentation

Transcription

1 February 14, 2017

2 Agenda Operational Assessments STAR s new consultative approach and partnership with the servicer Comping Methodology An innovative approach using the conditional inference tree model Servicer Total Achievement and Rewards (STAR ) Metrics Refinement of the General Servicing and Timeline Management metrics

3 STAR Inclusion for 2017 Timeline Management Solution Delivery Process Area Criteria Total Loan Count 35, , ,000+ General Servicing OR 60+ Count N/A N/A 1% Solution Delivery 60 Days to FC Time Frame Timeline Management Beyond FC Time Frame 1,000+ 1,000+ General Servicing Servicers that meet the above criteria would participate in the STAR Scorecard AND the Operational Assessment. Servicers that don t meet the loan population criteria, but performed poorly in the previous year s assessment would be included at Fannie Mae s discretion.

4 2017 STAR Operational Assessment Using prior year document submissions and joint discussions with servicers and Servicing Management contacts to identify changes in operational processes. Minimize new documentation submissions by holding conversations with servicers to understand processes within their operations and evaluations of metrics and prior compliance review results. Consistent with 2016, no action plans will be issued. Servicing Management will partner with servicers to determine value in implementation of recommendations and considerations. Recognize eligible servicers as STAR Performers based upon servicers overall metrics and results of reviews in areas of inclusion.

5 2017 STAR Operational Assessment Content Changes Add/Change Consolidated assessment of Change Management Program Compliance Framework Risk Management 2017 STAR Operational Assessment Revisions Organizational Overview & Shared Processes General Servicing Remove Investor Relationship Management Call Center Management Workforce Management Collections Operations Workforce Management Customer Service Call Center Reporting Call Center Demand-Capacity Management and Balancing General Servicing Collections Borrower Outreach Call Handling and Reporting (Call Monitoring moved to Workforce Management)

6 STAR Scorecard Updates for 2017 Metric Changes Retirement of metrics in General Servicing and Timeline Management New metrics for Solution Delivery and Timeline Management Changes to the measured population for Solution Delivery metrics Comp Changes New Comp Methodology Decision Trees Allows the consideration of more loan attributes to build each metric s comp Reduces the number of buckets created for comp, eliminating cases where loan comparisons are made based on a limited amount of data

7 STAR Metrics General Servicing Updates Removed Customer Service call center metrics for 2017 Minor changes to the treatment of transferred loans in the transition to 60+ metric Comparison Metric Category Credit Performance Transition to 60+ Transition to 60+ Investor Reporting Multi-Occurrence Hard Reject Rate Multi-Occurrence Hard Reject Rate Operational Performance Average Speed to Answer Multi-Occurrence Soft Reject Rate Multi-Occurrence Soft Reject Rate Shortage Percentage Shortage Percentage Abandonment Rate

8 STAR Metrics Solution Delivery Updates Modified population for 60+ to Cure, Retention and Liquidation Efficiency metrics to include all loans greater than 60 days delinquent Liquidation Efficiency now measures PLMS, Third Party Sales and REO acquisitions Comparison Metric Category Credit Performance 60+ to Cure 60+ to Cure Retention Efficiency Retention Efficiency Liquidation Efficiency Liquidation Efficiency 12-Month Mod Performance 6-Month Mod Performance Operational Performance Average Speed to Answer Average Speed to Answer Abandonment Rate Abandonment Rate

9 STAR Metrics Timeline Management Updates Removed Average Age Beyond Time Frame and Resolution Rate metrics New Metric, Transition to Beyond Time Frame, measures percentage of loans within 180 days of the state foreclosure time frame that transition to a beyond time frame over a 6 month period Comparison Metric Category Credit Performance Average Age Beyond Time Frame Transition to Beyond Time Frame Beyond Time Frame Resolution Operational Performance Motions for Relief Referred Timely Motions for Relief Referred Timely REOgrams Completed Timely REOgrams Completed Timely Title Issues Resolved in 45 Days Title Issues Resolved in 45 Days

10 STAR Scorecard for 2017 Metric Category Credit Performance Servicer Capability Model General Servicing Transition to 60+ Multi-Occurrence Hard Reject Rate Multi-Occurrence Soft Reject Rate Shortage Percentage Solution Delivery 60+ to Cure Average Speed to Answer Retention Efficiency Abandonment Rate Liquidation Efficiency 6-Month Mod Performance Operational Performance Transition to Beyond Time Frame Motions for Relief Referred Timely REOgrams Completed Timely Title Issues Resolved in 45 Days

11 What are Decision Trees Alternative way to identify key borrower, loan, and market conditions to segment similar loans Old statistical methodology used for data mining and credit scoring, but now more practical to use with new and more powerful programming languages and data visualization tools Leverages publically available open source algorithm to build the decision trees

12 Control Variables Evaluated and Selected Decision Trees allowed Fannie Mae to evaluate significantly more control variables than in prior years Better evaluation of prior DLQ history Large increase in number of control variables selected Variable Evaluated Months DLQ UPB Monthly P&I Amount MTMLTV ACI Score Origination Date (Group) State (Group) Property Type (Group) Refi Type (Group) Acquisition Documentation Type (Group) Acquisition Product Type (Group) Occupancy Status (Group) 12 Month HPI Change Payment Change in Last 6 Months Max DLQ in Past 24 Months Max DLQ in Past 12 Months Max DLQ in Past 18 Months Max DLQ in Past 6 Months # of DLQ in Past 24 Months # of DLQ in Past 18 Months # of DLQ in Past 12 Months # of DLQ in Past 6 Months # of SDQ in Past 24 Months # of SDQ in Past 18 Months # of SDQ in Past 12 Months # of SDQ in Past 6 Months Prior Modification in Past 24 Months Collectability Status # of Months Before FCL Timeline # of Days Past FCL Timeline State Allowable FCL Timeline # of Payments in Last 6 Months (Group) Payment in Last 6 Months Payment in Last 12 Months Payment in Last 18 Months Payment in Last 24 Months Pre Modification DLQ Modification Payment Reduction Modification Documentation Type Time in Modification Trial Months since Prior Modification (Group) Transition to to Cure Variable Used 6 Month Mod Transition Beyond Time Frame Retention Liquidation Efficiency Efficiency 2017 STAR Presentation

13 Final Results for 2017 Existing Credit Metrics STAR 2016 Gini # of Cohorts Control Variables STAR STAR STAR STAR STAR Transition to to Cure Liquidation Eff Retention Eff New Metrics 6 Month Mod Transition Beyond Time Frame

14 New Tool: Banyan Goal of the first iteration is to provide a easy to understand visual depiction of the servicer s portfolio Initial Features: Metric specific portfolio segmentation for multiple time periods Historical performance information of different pockets of loans Easy downloadable loan level information