New Tools to Help You Strengthen Your Servicing Performance
August 27, 2012
It is no secret that current trends in servicing emphasize earlier borrower intervention and timely workout settlements, strengthening Servicer performance, and improving servicing efficiency. Recent refinements to the servicing applications you use daily offer new tools to get you where you want to be.
New Electronic Default Reporting Edit Codes
Two new data error edit codes were recently implemented in Electronic Default Reporting (EDR) to help you further understand EDR reporting errors.
- Code 573: DDLPI must adv for Action Cd 20 – You will receive this error code if you reported default action code 20 (Reinstatement) with a DDLPI that did not advance from the DDLPI reported in the previous cycle. To resolve this edit, verify that you are reporting the correct default action code and DDLPI, then retransmit with the correct data.
- Code 574: Action Dte cannot be after cycle dte – You will receive this error code if you reported a Home Affordable Modification program (HAMP) Trial Period Start Date or Standard Modification Trial Period Start Date that is later than the current cycle date. To resolve this edit, verify you are using the correct Trial Period Start date and ensure that you begin reporting it for the correct cycle.
New Trial Period Tracking Reports
To help you track your trial period reporting data for Standard Modifications and HAMP Modifications, you can now access the following reports via Default Reporting ManagerSM.
- Standard Modification Trial Period Tracking Report – This report lists loans you reported via EDR with active, successful, or failed Standard Modification Trial Periods.
- Standard Modification Trial Over-Reported Exception Report – Lists loans that you continued to report for more than three months after a Standard Modification Trial Period Plan was successfully completed.
- Standard Modification Trial Under-Reported Exception Report – Lists Standard Modifications with inconsistent trial period reporting data. You should review your EDR Exception report to identify the edits resulting from the inconsistent reporting.
- HAMP Modification Trial Period Tracking Report – Lists loans reported via EDR with new, active, successful, or failed HAMP trial periods.
New HAMP Reporting: Best Practices Available
The Freddie Mac data about HAMP Trial Period Plans and HAMP Modifications that you report to the HAMP Program Administrator must be consistent with the data you report to Freddie Mac. Need help establishing or strengthening your internal control and quality assurance procedures to ensure you are meeting these requirements?
Refer to the new best practices job aid that we compiled using input from Servicers about how they successfully manage HAMP reporting requirements. This quick reference includes information about the inherent differences in reporting timelines across separate technology platforms, including Workout Prospector® and the HAMP Reporting Tool (IR2). Use these best practices to ensure a complete reconciliation process across all relevant systems.