Servicing ScoreCard is rapidly becoming the servicing performance measurement standard for servicers, analysts, issuers, investors, traders, and insurers. Using LoanPerformance’s industry-leading databases and RiskModel analytics, ScoreCard enables users to evaluate and benchmark loan portfolio servicing on a near-real-time, risk-adjusted basis.

Pioneering Servicing Standards
Although various rating agencies—Fannie Mae, Freddie Mac, HUD/FHA, and others—give servicers their blessings, there is no accepted industry standard for servicing. The reason? Even though the difference in return between using effective and ineffective servicer can be millions of dollars, until now there has been no objective way to measure servicing performance. Now, however, the Servicing ScoreCard changes all that (more about product).

Serious ROI from Servicing Performance Data
Extracting the servicing component from loan portfolio performance with objective accuracy provides information of immense value to servicers and those who pay them. For example, a recent two-year analysis of the return on subprime servicers in a $1 billion portfolio found that:

• The cost difference between first and eighth-ranked servicers was $31.5 million
• The cost difference between second and seventh-ranked servicers was $9.9 million
• The cost difference between fourth and fifth-ranked servicers was $2.3 million

Servicers can use this kind of information to analyze and improve their performance versus the competition—enhancing their bottom lines significantly. Holders of loan portfolios can use it to bolster yield dramatically (some traders and investors even use it to play “servicer arbitrage,” buying loan pools with inferior servicing and switching to more efficient providers).

For More Information
To learn more about Servicing ScoreCard, please send us an email or give us a call at the appropriate number for your geographic area.