MCLEAN, Va., July 25, 2011 /PRNewswire/ -- Freddie Mac (OTC
Bulletin Board: FMCC) today announced its Servicing Success
Program, a new robust and balanced approach to setting performance
expectations, providing feedback on servicer strengths, and
weaknesses, and promoting a dialogue with servicers to improve
portfolio performance and preserve homeownership. The Servicing
Success Program was posted today on Freddie Mac's website and is
scheduled to take effect for all Freddie Mac servicers on
August 1, 2011.
News Facts:
- Freddie Mac's Servicing Success Program evaluates servicer
performance in investor reporting and remitting and default
management. The Servicing Success Program's performance
criteria are designed to better align with Freddie Mac business
objectives in the current environment and help servicers more
effectively assess their progress.
- Freddie Mac's Servicing Success Program combines a servicer
scorecard and loan file reviews plus, for larger servicers,
individualized requirements and Servicing Account Plans that set
objectives and goals to reduce costs and preserve
homeownership.
- A new ranking system tied to the Servicing Success Program's
criteria and weightings is replacing Freddie Mac's traditional
performance tiers. Freddie Mac will now provide each servicer with
a monthly ranking based on the performance points it earned the
prior month so it can see its overall performance relative to its
competitors.
- Servicers will be able to see their individual August ranking
on their individual servicer performance profile webpage beginning
October 7, 2011.
- Later this year, Freddie Mac plans to announce a companion
Servicer Success Rewards and Remedies component that will integrate
the Servicing Success Program with the Servicing Alignment
Initiative Freddie Mac is undertaking with Fannie Mae at the
direction of the Federal Housing Finance Agency.
Quote:
Attribute to Tracy Mooney, Senior
Vice President, Single-Family Servicing and REO, Freddie Mac:
"Today's announcement marks the beginning of a significant
advance in the scope and sophistication of servicer performance
management. The robust, balanced approach we are launching in 2011
underscores Freddie Mac's commitment to invest in the future of
U.S. homeownership by strengthening servicing practices and
enabling servicers to more effectively preserve homeownership."
Freddie Mac was established by Congress in 1970 to provide
liquidity, stability and affordability to the nation's residential
mortgage markets. Freddie Mac supports communities across the
nation by providing mortgage capital to lenders. Over the years,
Freddie Mac has made home possible for one in six homebuyers and
more than five million renters. www.FreddieMac.com
SOURCE Freddie Mac