Servicer Incentive Program
We Believe Excellent Results Deserve Premium Rewards
Freddie Mac's recently revised incentive program recognizes the results that our Servicers achieve through their persistence, hard work and commitment to be the best. We created this program to match the effort our Servicers are making towards the achievement of a mutually beneficial goal – quality servicing. We measure your performance and report it to you on your confidential Servicer Performance Profile.
Servicer Benefits
Our Servicer Incentive Program is designed to:
- Reward you for superior servicing
- Help you offset your costs of pursuing alternatives to foreclosure
- Complement our array of cutting-edge management tools
Our Servicer Incentive Program includes three components: Investor Reporting and Remitting Incentives, Default Management Incentives, and Tier One Premium Awards.
Investor Reporting and Remitting Incentives
When you achieve a Tier One rating on the Investor Reporting and Remitting category of your Servicer Performance Profile in a calendar quarter, you receive incentives for three consecutive months after the Tier One status is made available. Incentives include:
- Waivers of penalties related to non-compliance with reporting requirements
- Reduction of penalties for cash remittance non-compliance
- Waivers of fees for database updates, research and record reconstruction
Default Management Incentives
We pay you incentives for alternatives to foreclosure.
- Our Workout Incentive Program compensates you, regardless of your Tier rating, for certain settled alternatives to foreclosure. You receive incentives for loan modifications, short payoffs, make-whole pre-foreclosure sales, deeds in lieu of foreclosure, and successful repayment plans that result in full reinstatement or full payoff. For more information, please visit the Workout Incentive Program Web page.
Tier One Premium Awards
You'll achieve a Tier One Platinum award if you simultaneously attain Tier One ratings in both the Investor Reporting and Remitting and the Default Management categories of your Servicer Performance Profile for two quarters during a calendar year. Tier One Platinum incentives include:
- Waivers of transfer of servicing and database change fees
- A $10,000 non-monetary waiver of annual EarlyIndicator® renewal fees or the option to use the waiver to acquire this innovative technology tool
- A $1,000 non-monetary waiver to be used towards Freddie Mac training classes and events
Freddie Mac is committed to its small- and mid-sized community-based Servicers, and we recognize their excellence through Tier One Gold. High-performing Servicers with small, seriously delinquent portfolios have the opportunity to achieve Tier One Gold recognition if they do the following:
- Achieve Tier One ratings in Investor Reporting and Remitting for two quarters in a calendar year.
- Attain a Tier One rating in Default Management based on an average annual calculation during a calendar year.
- Have a delinquent portfolio that averages one or more seriously delinquent loans per month.
Tier One Gold incentive include:
- A $500 non-monetary waiver to be used towards Freddie Mac training classes and events
In addition, a Servicer that has met the criteria for Tier One Platinum or Tier One Gold for four consecutive years and had no material foreclosure timeline penalties is eligible for our annual prestigious Hall of Fame designation. To be eligible, your foreclosure timeline penalties must be the lesser of $25,000 or a certain percentage of the unpaid principal balance of 90+ day delinquent loans in your portfolio as of December 31 for the calendar year. You must qualify for this designation each calendar year.
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