Three of the four largest mortgage servicers failed to meet Fannie Mae's minimum servicing requirements in the first half of 2013, according to a Fannie report released Tuesday.
Bank of America (BAC), Citigroup (NYSE:C) and JPMorgan Chase (JPM) did not produce mortgage servicing results at or above a median level compared with their peers, so none were identified in a report on Fannie's Star program. The three were also unranked in Fannie's first-quarter report.
Fannie's Star program ranks servicers based on certain metrics including improved performance of loans that are delinquent for 90 days or more, retention efforts that keep borrowers in their homes, and the efficiency of liquidating homes using short sales.
Fannie did not assign servicers a ranking of one to five stars in the latest report but rather determined which servicers met minimum standards. None has yet to receive five stars.
Wells Fargo (WFC), Fifth Third (FITB), Regions Bank (RF) and BB&T (BBT) met median performance targets in the first half of 2013 relative to their peers. Four nonbank servicers also met the median targets. They are Green Tree Servicing, a unit of Tampa-based Walter Investment Management (WAC), Nationstar Mortgage, Ocwen Financial and Seterus, a unit of IBM.