Such metrics could include customer satisfaction ratings, delinquency and cure rates, the average time that a homeowner waits on the phone to talk with the servicer, and servicer error rates. Indeed, one can even imagine the development of a uniform servicer scorecard. To be meaningful, the ability to transfer servicing from low-performing servicers to high-performing ones would have to be enhanced.
The creation of common back-office systems across servicers would make transfer less prone to error and less costly, and any contractual or legal barriers would need to be reduced to allow investors to “fire” a lowperforming servicer.