"Recovery Score" is what Deutsche Bank is calling it after ranking the top mortgage servicers in the US by how long it's taking to close a short sale transaction and the percentage recovered in each transaction.
Servicers received the highest score by recovering the most in the least amount of time and according to Deutsche Bank a short sale resulted in a higher Recovery Score than an REO sale.
REO Insider just listed the top 3 fastest short sale servicers based on loan type. The numbers are average length of time for each servicer to close a short sale.
Prime:
1. GMAC – 6 months with 53% of their depositions as short sales. Recovery Score (RS) 59.3
2. Citigroup’s servicing arm CitiMortgage – about 7.5 months with 56% of their depositions as short sales. RS 54%
3. Wells Fargo – roughly 8 months with 34% of their depositions as short sales. RS 55.6
By the way...Bank of America - 11 months, 59% of their depositions as short sales. The Lowest RS 45.5
Countrywide – now owned by Bank of America – had the longest short sale timeline at an average of more than 13 months.
Subprime:
1. Wells Fargo – more than 15 months
2. HomEq Servicing – 16 months
3. Morgan Stanley’s servicing arm Saxon Mortgage Services – at a little more than 17 months
Equicredit and Ocwen came in last with an average of more than 29 months on their short sale timeline
Option-ARM:
1. JPMorgan Chase’s EMC Mortgage – just over 8 months
2. Aurora Loan Services – 10 months
3. GMAC – just more than 10 months
Again, Countrywide brought up the rear with a short sale timeline at almost 14 months
Alt-A:
1. First Horizon – just over 9 months
2. Both Wells Fargo and Aurora – roughly 11 months
(Here’s Countrywide again at the bottom at more than 13 months for their short sale timeline)
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