“When asked about the discrepancy between the banks’ public image and their positive Fannie Mae evaluation, David Berenbaum, chief program officer of the National Community Reinvestment Coalition, pointed out that top-ranked service performance in the mortgage industry does not necessarily mean good performance.” ~ huh?


Fannie Mae Ranks Banks in ‘Robo-Signing’ Settlement as Top Servicers

Some of the most publicly reviled banks are currently industry leaders when it comes to good service, according to a report by Fannie Mae released Thursday.

Fannie Mae gave three-star ratings to CitiMortgage, JPMorgan Chase, Ally Bank and Wells Fargo — four of the five largest U.S. mortgage servicers, which were involved in the $25 billion “robo-signing” settlement — for their service performance in the first half of 2012.

The evaluation, part of Fannie Mae’s Servicer Total Achievement and Rewards Program, assigns anywhere from a one- to five-star rating to banks based on “overall performance, customer service and foreclosure prevention efforts.”

A three-star rating was the highest earned of all banks assessed by Fannie Mae which, along with Freddie Mac, guarantees more than half of U.S. mortgages.

The results of the evaluation come at a time when mortgage-servicing standards are under public scrutiny, with the Consumer Protection Financial Bureau having proposed industry-wide rules to protect borrowers earlier this month.

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