Posts by Tracy Mooney

Faster. Easier. More transparent. These are only some of the benefits borrowers are experiencing with the new Freddie Mac Standard Short Sale program that became effective on November 1.

Because of their complexity, short sales have traditionally taken months to complete. We worked with our regulator, the Federal Housing Finance Agency, to remove obstacles and streamline the process so we can help more borrowers and reduce costs for the company and taxpayers.

Property valuation is a cornerstone of selling real estate. It tells the market what we think a home is worth and what we'll accept as a sales price. A proper valuation process will also determine a home's value in its current "as-is" condition and after repairs and renovations.

Freddie Mac accounts for about five percent of the nation's supply of foreclosed homes and we finished 2011 with a nationwide inventory of just over 60,000 homes in REO, which is still historically high by company standards. Last year we sold about 110,000 homes for an average of 95 percent of market value; two-thirds of them were sold to owner-occupants.

Distressed homeowners with mortgages owned by Freddie Mac and Fannie Mae are experiencing a more consistent and efficient interaction with their servicers thanks to new servicing requirements that took effect late last year. This updated framework for mortgage loan servicing is part of the Servicing Alignment Initiative (SAI), an effort directed by our regulator – the Federal Housing Finance Agency – to establish uniform servicing policies and processes for borrowers who may be in danger of losing their homes. The SAI aligns requirements and sets standards for GSE-owned mortgages across key areas of servicing, such as borrower contact, delinquency management, and workout options.

Consistency and standardization are good for the industry, helping to increase efficiency for servicers by streamlining and simplifying processes. Here are three reasons why it's also good for borrowers.

The lingering housing downturn is causing more and more "bank-owned" for sale signs to pop up in neighborhoods across the country. In fact, they currently account for about a third of all home sales in the United States. Although Freddie Mac's inventory of foreclosed homes has been falling and represents only a small share of all real estate owned (REO) properties, we understand the negative impact these homes can have on neighborhoods and communities. That's why our policies and programs are designed to maintain home values, reduce losses, and stabilize communities.

Here are four little-known facts about Freddie Mac REO – important facts that often get overlooked in the national conversations about REO's impact on communities.