We at the National Servicing Center (NSC) are excited to announce the new TRSII system, Single Family – Data Analysis & Reporting Tool (SF-DART)! This system is a self-service, one-stop-shop for FHA approved servicers to access their TRSII related data.  If you need access to this system, please contact us at sfdatarequests@hud.gov.

For detailed information about the TRSII scoring model, please see the Servicer Narrative. This narrative details the calculations for the scoring elements, why and how we are looking at these elements, when and from which sources the data comes, suggestions to increase your scores, how to contact us and much more.

TRSII Incentive Round 9 Release and Incentive Payment Information

As a reminder, additional incentive payments for all servicers ranked as Tier 1 for this Incentive Round began for claims processed on or after January 1, 2022, and goes through December 31, 2022. These additional incentives are as follows:

• An additional $100 payment for each Special Forbearance Agreement executed on or after January 1, 2022.
• An automatic (i.e., HUD's written approval is not required) extension of two additional months to continue to market their properties being sold via Preforeclosure Sale for a total of six (6) months.
• An increase in the reimbursement of foreclosure costs from two-thirds to 75% for Part B claims received by HUD on or after January 1, 2022, for loans endorsed on or after February 1, 1998.

All questions regarding related issues should be directed to mailbox sfdatarequests@hud.gov.

Scores, Grades and Tiers

Each scoring element is evaluated separately based on activity for each month in the quarter, then averaged for a quarterly score.  Scores for all four elements are then averaged for a score for a given fiscal year quarter.

Servicers will be provided with a TRSII scorecard each quarter along with a corresponding letter grade and Tier ranking.  A grade of "A" will correspond to a Tier 1 ranking, a grade of "B" will correspond to a Tier 2 ranking, a grade of "C" or "D" will both correspond to Tier 3 rankings, and a grade of "F" will correspond to a Tier 4 ranking.  Quarterly scores will be averaged to produce a final annual FY score and grade.

TRSII:  How Did We Get Here?

HUD has utilized a number of metrics to assess servicer performance, particularly in the area of loss mitigation.

• 2016:  TRSII on SF-DART

NSC had a system built to centralize all of the pertinent information in an online analytics system and made it accessible to servicers.  Thus, making the process of generating scores, as well as obtaining scoring information, more autonomous.

• 2013 to 2015:  Tier Ranking System II (TRSII)

TRSII became the official metric for evaluating servicer compliance with loss mitigation and other aspects of default servicing.  FY13 was the first year which determined those servicers receiving increased incentives, and the incentive round count was reset.   

• 2010:  SPS (Servicer Performance Scorecard)

TRSII was piloted in FY2010 as the Servicer Performance Scorecard.  Minor changes were made throughout the pilot to all elements (Foreclosure Prevention, Redefaults, SFDMS Reporting and Loss Mitigation Engagement) based upon feedback as well as upon congruence between the scoring elements and our regulations, particularly in light of the economic crisis.

• 2007 – 2010:  TRS in operation; TRSII under development

We needed a more encompassing scoring model that would effectively assess a servicer's performance, not only with loss mitigation, but also with other aspects of default servicing. This includes compliance with HUD/FHA delinquent servicing guidelines and requirements in the areas of early delinquency intervention, loss mitigation engagement quantity and quality, and Single Family Default Monitoring System (SFDMS) reporting. 

• 2005:  TRS (Tier Ranking System)
• 1997:  LMPA (Loss Mitigation Performance Analysis)

Publication of Scores

The table below is a summary of the number of servicers evaluated by round and by tier.  Servicer details can be found by clicking on the Round hyperlink.