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

New System

We at the National Servicing Center (NSC) are excited to announce the new TRSII system, Single Family – Data Analysis & Reporting Technology (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 4 Release and Incentive Payment Information

The announcement notifications for Incentive Round 4 will be sent via email to servicers no later than December 31, 2016.  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, 2017, and goes through December 31, 2017.  These additional incentives are as follows:

  • An additional $100 payment for each Special Forbearance Agreement executed on or after January 1, 2017.
  • 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, 2017, 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

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.

TRS or TRSII

Round

Evaluation
Period
Beginning

Evaluation
Period
Ending

Scores
Released

Tier
1

Tier 
2

Tier
3

Tier
4

Total Number of Servicers 
Scored/Opted Out

Incentive
Round

TRSII

4

10/1/2015

9/30/2016

TBD

TBD

TBD

TBD

TBD

TBD

Yes

TRSII

3

10/1/2014

9/30/2015

12/11/2015

53

63

36

20

172 / 29

Yes

TRSII

2

10/1/2013

9/30/2014

12/19/2014

47

63

41

24

175 / 29

Yes

TRSII

1

10/1/2012

9/30/2013

12/31/2013

21

55

61

35

172 / 34

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