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HUD   >   Program Offices   >   Housing   >   Single Family   >   National Servicing Center   >   HUD NSC Tier Ranking System
 
Tier Ranking System (TRS) & Tier Ranking System II (TRSII)

Background

HUD has utilized a number of metrics to assess servicer performance, particularly in the area of loss mitigation, which has included LMPA (Loss Mitigation Performance Analysis) starting in 1997 and TRS (Tier Ranking System) starting in 2005. 

Around 2007, it was determined that a more encompassing scoring model was needed that would effectively assess a servicer’s performance not only with loss mitigation but also with other aspects of default servicing including 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. 

TRSII was piloted in FY2010 as the Servicer Performance Scorecard.  Minor changes were made throughout the pilot to all elements based upon feedback as well as upon congruence between the scoring elements and our regulations, particularly in light of the economic crisis.

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.

Announcement: TRS II Incentive Round 2 Release and Incentive Payment Information

The announcement notifications for Incentive Round 2 were sent via email to servicers on December 19, 2014.  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, 2015, and goes through December 31, 2015.  These additional incentives are as follows:

  1. An additional $100 payment for each Special Forbearance Agreement executed on or after January 1, 2015.
  2. 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.
  3. 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, 2015, 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.

Final Fiscal Score
Assigned Grade
Corresponding
Tier
 90.00% - 100.00+%
A
1
80.00% - 89.99%
B
2
70.00% - 79.99%
C
3
 60.00% - 69.99%
D
3
59.99% or Less
F
4
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.

  
 
TRS or TRSII
Round
Evaluation
Period
Beginning
Evaluation
Period
Ending
Scores
Released
Tier
1
Tier 
2
Tier
3
Tier
4
Total Number of Servicers 
Evaluated
Incentive
Round
TRSII
10/1/2013
9/30/2014
12/19/2014
47
63
41
24
175
Yes
TRSII
1
10/1/2012
9/30/2013
12/31/2013
21
55
61
35
172
Yes
TRS
53
7/1/2012
6/30/2013
8/15/2013
123
71
16
0
210
No
TRS
52
4/1/2012
3/31/2013
5/15/2013
119
70
15
0
204
No
TRS
51
1/1/2012
12/31/2012
5/15/2013
124
64
16
1
205
No
TRS
50
10/1/2011
9/30/2012
12/15/2012
114
71
15
2
202
Yes
TRS
49
7/1/2011
6/30/2012
8/15/2012
115
59
17
3
194
No
TRS
48
4/1/2011
3/31/2012
5/31/2012
117
47
21
6
191
No
TRS
47
1/1/2011
12/31/2011
3/15/2012
101
66
16
5
188
No
TRS
46
10/1/2010
9/30/2011
12/15/2011
105
65
16
6
189
Yes
TRS
45
7/1/2010
6/30/2011
8/15/2011
108
66
8
6
188
No
TRS
44
4/1/2010
3/31/2010
5/15/2011
108
66
8
5
187
No
TRS
43
1/1/2010
12/31/2010
4/15/2011
112
64
11
6
193
No
TRS
42
10/1/2009
9/30/2010
12/15/2010
121
53
9
5
188
Yes
TRS
41
7/1/2009
6/30/2010
8/13/2010
119
49
7
3
178
No
TRS
40
4/1/2009
3/31/2010
5/20/2010
118
48
6
1
174
 No
TRS
39
1/1/2009
12/31/2009
3/10/2010
117
44
8
1
170
No
TRS
38
10/1/2008
9/30/2009
12/15/2009
117
41
7
1
166
Yes
TRS
37
7/1/2008
6/30/2009
8/15/2009
114
38
8
1
161
No
TRS 
36
4/1/2008
3/31/2009
5/15/2009
122
33
6
2
163
No
TRS
35
1/1/2008
12/31/2008
2/13/2009
111
36
9
1
157
No
TRS
34
10/1/2007
9/30/2008
12/15/2008
97
40
7
2
146
Yes
TRS
33
7/1/2007
6/30/2008
8/15/2008
93
41
12
2
148
No
TRS
32 
 4/1/2007
3/31/2008
5/15/2008
91 
46 
8
3
148
No
TRS
 31 
 1/1/2007
12/31/2007
2/15/2008
89 
 39 
11
5
144
No
TRS
30
 10/1/2006
9/30/2007
12/15/2007
99 
43
9
5
156
Yes
TRS
29 7/1/2006 6/30/2007  8/15/2007
101
49  14 1 165 No
TRS
28 4/1/2006 3/31/2007  6/1/2007
116
48  11  4 179 No
TRS
27 1/1/2006 12/31/2006  4/2/2007 110 54  8  4 176 No
TRS
26 10/1/2005 9/30/2006  12/22/2006
110
57  12  4 183 Yes
TRS
25 7/1/2005 6/30/2006  8/15/2006 106 57  13  4 180 No
TRS
24 4/1/2005 3/31/2006 6/10/2006 92 61 16  5 174 No
TRS
23 1/1/2005  12/31/2005  4/15/2006 95  60  20   3  178  No
TRS
22  10/1/2004  9/30/2005  2/17/2006 89  66  17   7  179 Yes
TRS
21  7/1/2004  6/30/2005  2/3/2006 88  68  11   7  185 No
TRS
20 4/1/2004 3/31/2005 10/7/2005 92 72 25 13 202 No