HUD has released Mortgagee Letter 2006-31 announcing the results of HUD's Tier Ranking Scores (TRS) for Round 26 covering the fiscal year 2006 performance period. The assessment used to determine additional incentives for the 2007 calendar year is linked to these scores.

Lenders ranked in Tier 1 are eligible for the following increased loss
mitigation incentives:

• An additional $100 payment for each Special Forbearance Agreement
  executed on or after January 1, 2007.
• An automatic (i.e., would not require written approval from HUD) extension
  of two additional months to continue to market their properties related to
  Pre-Foreclosure Sale time frames.
• 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, 2007, for loans
  endorsed on or after February 1, 1998.

HUD will continue to provide Tier Ranking Scores quarterly, but eligibility for performance incentives will be determined on an annual basis.

Tier Ranking Scores represent lenders performance for a 12-month period prior to
the issuance of such scores.  The identity of Tier 1 Lenders will be published
every year on HUDs TRS website and announced via a Mortgagee Letter,
effective with this Round of scores.  Beginning with the next incentive round (i.e., Round 30) the entire TRS list for all four tiers will be posted on the Departments TRS website.

Questions or comments regarding the tier ranking scoring process, should be submitted to hsg-lossmit@hud.gov.

To view the listing of Tier 1 lenders, please click here

To view the Mortgagee Letter in its entirety, please click here.