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Servicer Success Scorecard

Frequently Asked Questions

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General

  1. When is the Scorecard published each month?
  2. Will Freddie Mac continue to track performance for any of the deleted default management metrics?
  3. How will transfers of servicing impact the 2017 Scorecard?
  4. How will the Investor Reporting Change Initiative impact the 2017 Scorecard?
  5. What features are not included in the Servicing Agent and Interim Servicer Scorecards?
  6. How do I see historical performance in one view?

Metrics and Weights

  1. Can you provide some insights into why you added new default management metrics in the 2017 Scorecard?
  2. Will you exclude loan workouts that are not yet approved for Trial Period Plans from default management metrics?
  3. You're removing Trial Period Plans that are less than or equal to four months old from default management metrics – is that based on Trial Period Plan effective date or Trial Period payment date?
  4. If a bankruptcy and a Trial Period Plan are reported simultaneously, do you extend the Trial Period Plan exclusion beyond four months?
  5. As an example, where can I see details of what loans are included/excluded in the Total Timeline Trend metric calculation?
  6. Are bankruptcies accounted for in the Total Timeline Trend metric?

Synthetics

  1. Are all 2017 Scorecard metrics compared to the synthetic portfolio?
  2. Are you changing how you construct my synthetic portfolio in 2017? What details will you provide?
  3. Will subservicers have a synthetic portfolio?
  4. Why are all of the default management metrics weighted equally?
  5. Will I be able to tell which rank group I’m in and my specific rank within that group?
  6. Why don't I have a rank for certain default management metrics?
  7. How can I find out my rank against all Servicers, not just in my rank group?

General

  1. When is the Scorecard published each month?

    The Scorecard is published on the last business day of each month with the previous month's performance results.

  2. Will Freddie Mac continue to track performance for any of the deleted default management metrics?

    Deleted metrics will not be tracked. However, you'll see several supplemental metrics in the 2017 Scorecard that are similar to the deleted metrics from the previous Scorecard.

  3. How will transfers of servicing impact the 2017 Scorecard?

    For the 2017 Scorecard, loans being transferred will be excluded from applicable metrics during the transfer process, and until the transfer is complete. For example, if a loan is transferred from Servicer "A" to Servicer "B" during January, then the loan will be excluded for both Servicers in their January 2017 Scorecard performance results.

    NOTE: 2017 Scorecard metrics will generally account for current month activity only, as we’ve eliminated the rolling three-month performance period.

  4. How will the Investor Reporting Change Initiative impact the 2017 Scorecard?

    There are no anticipated impacts at this time. However, we may make updates to the Scorecard after, or in anticipation of, the implementation of the Investor Reporting Change Initiative in 2018.

  5. What features are not included in the Servicing Agent and Interim Servicer Scorecards?
    • Default Management metric ranks, neither individual nor overall
    • Metric Detail pages
    • Executive Summary Report
    • 12-Month Rolling Scorecard Summary Report
    • Investor Reporting section
    • File Review Monitoring for Servicers who participate in this program (applies only to the Interim Servicer Scorecard)
  6. How do I see historical performance in one view?

    The 12-Month Rolling Scorecard Summary Report summarizes your portfolio and performance results over the prior 12 months.

Metrics and Weights

  1. Can you provide some insights into why you added new default management metrics in the 2017 Scorecard?
    • Transition from 30 to 60+: We've removed the previous Transition to 60+ metric and added the Transition from 30 to 60+ metric to provide more timely feedback on your early collection efforts, and to use a more stable metric for ranking purposes.
    • Total Timeline Trend: The Total Timeline Trend metric gives month-over-month performance on exceeded state foreclosure timelines, if applicable.
    • 6-Month Modification Performance: We’ve shortened the lookback period from 12 months to six months to give you more timely and relevant performance data.
  2. Will you exclude loan workouts that are not yet approved for Trial Period Plans from default management metrics?

    No, we only exclude active Trial Period Plans.

  3. You're removing Trial Period Plans that are less than or equal to four months old from default management metrics – is that based on Trial Period Plan effective date or Trial Period payment date?

    Calculations are based off the Trial Period Plan effective date.

  4. If a bankruptcy and a Trial Period Plan are reported simultaneously, do you extend the Trial Period Plan exclusion beyond four months?

    Yes, Trial Period Plans reported concurrently with a bankruptcy will be excluded for up to 12 months.

  5. As an example, where can I see details of what loans are included/excluded in the Total Timeline Trend metric calculation?

    The Loan Level Detail reports, available via the Scorecard and Metrics Details pages, provide timeline details. Also, additional loan-level information is available in the Manager Series reports.

  6. Are bankruptcies accounted for in the Total Timeline Trend metric?

    Yes, reported bankruptcies will be credited in addition to the timelines.

Synthetics

  1. Are all 2017 Scorecard metrics compared to the synthetic portfolio?

    No, only your default management metrics will have a synthetic portfolio comparison because these metrics are more prone to portfolio composition differences. Performance for investor reporting metrics are not compared to a synthetic portfolio because they are driven by operational efficiencies and/or processes/procedures.

  2. Are you changing how you construct my synthetic portfolio in 2017? What details will you provide?

    No, we'll construct your synthetic portfolio to calculate your rank in the same way as we did in 2016 – at the portfolio level. However, we are introducing metric-specific control variables that will be listed in the Metric Detail pages and in the updated Freddie Mac Servicing Success Program Reference Guide.

  3. Will subservicers have a synthetic portfolio?

    Yes, subservicers will receive their synthetic portfolio performance for each default management metric. This information will be included in their Servicing Agent Scorecard.

Rankings

  1. Why are all of the default management metrics weighted equally?

    While planning for the 2017 Scorecard, we considered the current state of servicing and Freddie Mac's strategic interests. We decided that all time periods and activities within the default management lifecycle that are reflected in the updated metrics should receive equal attention and scrutiny.

  2. Will I be able to tell which rank group I’m in and my specific rank within that group?

    Yes, you'll be able to see the other Servicers in your rank group. For Servicers who qualify for rankings, you'll see your ranks and the other Servicers included in your rank group, but not their ranks.

  3. Why don't I have a rank for certain default management metrics?

    If you are in rank groups 1 or 2 and you don't have a rank, then you don't have enough loans in default to calculate that particular metric (e.g. not having 20 or more loans to calculate your Transition from 30 to 60+ metric).

  4. How can I find out my rank against all Servicers, not just in my rank group?

    You'll only be ranked against other Servicers in your rank group.

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