New scores reflecting mortgagees’ compliance with loss mitigation requirements on government-insured loans are being released every three months.
The Federal Housing Administration will be implementing its Tier Ranking System II, or TRS II, for FHA mortgagees.
The system will be used to evaluate mortgagees’ compliance with FHA loss mitigation guidance, default servicing regulations and default reporting requirements.
The new system was discussed in Mortgagee Letter 2013-46 from the Department of Housing and Urban Development.
Mortgagees will be provided their scores on a quarterly basis.
The first TRS II rankings will be based on the 12 months ended Sept. 30, 2013.
The results will be released no later than Tuesday and will determine which mortgagees are eligible for additional incentive payments during calendar-year 2014.