Servicing ScoreCard
Understanding Servicing Impact
LoanPerformance’s Servicing ScoreCard enables holders of mortgage portfolios to understand the impact of collateral servicing on a portfolio’s overall performance. It does this by isolating the portfolio servicer’s performance in executing necessary tasks and comparing those numbers to servicing performance averages for the market—given collateral with the same level of risk.
Servicing ScoreCard compares portfolio servicer performance to servicer performance averages for the market (Numbers for illustration only). |
Click to Enlarge |
Servicer performance components typically measured include:
- Total losses, loss severity, loss frequency
- Foreclosures and REO timelines
- Front-end collections
ScoreCard assigns a numeric score of 100 to the average market performance for each servicing component, then indexes the portfolio servicer’s performance relative to those standards. For example, a portfolio servicer with a total loss index of 115 would be demonstrating a loss of $1.15 compared to an average market loss of $1.00 for collateral of equivalent risk.
Trustworthy Baseline Data
With the market data a key to accuracy, Servicing ScoreCard derives its comparison averages from industry-standard databanks that are so comprehensive—46-million individual mortgages and over $1 trillion in non-agency mortgage and asset-backed securities—and so detailed that they can yield authoritative component averages no matter what the target collateral’s risk may be.
Servicing ScoreCard isolates key components of servicer performance and assigns each an easily compared numerical value (100 = average market value). |
Actionable Results
Servicing ScoreCard utilizes LoanPerformance RiskModel analytics—the state of the art in predictive analytics—to adjust for even the most minute differences between averaged baseline market collateral and the collateral in specific portfolios. This enables users to perform "apples-to-apples" comparisons that provide definitive, actionable results—including:
- Fixable servicing processes
- Portfolio yield and cash flow projections
- Specific property states with servicing issues
- Supporting data for servicer, investor negotiations
- Future servicing performance drivers
Business Development Tool
Servicing ScoreCard benchmarking information identifies servicing performance processes that can influence portfolio value. Such results can be highly persuasive in business development when included in communications to investors, potential clients, or rating agencies. The ability to document below-average servicing losses convincingly increases the value of a portfolio’s underlying collateral—which can significantly enhance the value of the portfolio itself.
Identify yourself (name, company, email only) on the accompanying form and download a PDF of the Servicing ScoreCard product brochure (421KB).
For More Information
To learn more about Servicing ScoreCard, please email us or
give us a call at the appropriate number for your geographic area.
