Servicers Help More Than One Million Borrowers in 2012
June 26, 2013
Freddie Mac Servicers helped more than one million struggling borrowers in 2012 – quite a significant accomplishment. Together, Freddie Mac and our Servicers supported the nation’s housing market recovery by optimizing borrower outcomes, which means working to find the best possible solutions for struggling homeowners. The results are clear - Servicer efforts to help struggling borrowers and stabilize neighborhoods are working.
Here are a few highlights that show how much Freddie Mac Servicers accomplished:
- From January 2012 through March 2013, Seller/Servicers helped over a million borrowers and their families stay in their homes, including:
- 687,000 borrowers who refinanced in 2012, despite declines in their home values. This includes 434,000 borrowers through the Home Affordable Refinance Program (HARP). In the 1st quarter of 2013, Seller/Servicers helped 197,000 borrowers refinance, including 113,000 through HARP.
- 70,000 borrowers who were severely delinquent, and were able to modify their mortgage payments in 2012 through the Home Affordable Modification Program (HAMP) and the Standard Modification. In the 1st quarter of 2013, Servicers helped 21,000 borrowers through loan modifications. (For more information on these programs, review the At-a-Glance: Freddie Mac Modification Comparison).
- 46,000 borrowers who kept their homes in 2012 thanks to temporary payment relief through forbearance, reinstatement, and repayment plans, after they experienced a temporary financial hardship or the impact of a natural disaster. In the 1st quarter of 2013, Servicers helped 11,000 borrowers through forbearance options.
- When home retention wasn’t an option, Servicers helped 53,000 struggling borrowers exit their mortgages gracefully in 2012 through the Standard Short Sale and the Standard Deed-in-Lieu of Foreclosure programs. In the 1st quarter of 2013, Servicers helped 14,000 borrowers through these programs.
- We created new programs to help at-risk borrowers in unique situations.
- Servicers are required to implement the Streamlined Modification, which is for borrowers in all states who are between 90 and 720 days delinquent, by July 1, 2013.
- Hurricane Sandy Relief offers temporary relief to borrowers who own homes or work in eligible disaster areas and are trying to honor their mortgage obligations.
New Homeowner Tool
In our latest Executive Perspectives Blog, Senior Vice President Tracy Mooney writes about optimizing borrower outcomes and introduces the Mortgage Help Navigator, a new online tool that steers borrowers to information focused on their personal circumstances. After enhancing and expanding our foreclosure prevention policies and programs, we designed the Mortgage Help Navigator to help homeowners learn about available expanded relief options.
Looking Forward: More Communication, Continued Success
None of these accomplishments would have been possible without the significant efforts made by our Selling and Servicing partners.
All of us at Freddie Mac thank Servicers for your great work. We look forward to optimizing more borrower outcomes as we further expand and enhance our programs and policies to better assist the homeowners you help every day.